House Republicans recently proposed allowing the expiration of the child tax credit for low income working families after 2017, and utilizing the freed funding towards bigger child tax credits for better off families. In contrast, Obama proposed to make the expansion for low-income working families permanent. Both are estimated to cost about $11 billion a year, but the Citizens for Tax Justice reports that, both nationally and on a state-by-state basis, the President’s proposal would mostly help low-income families while the House Republican proposal would mostly help families with incomes above $100,000.
See Citizens for Tax Justice, “State-by-State Figures on Two Child Tax Credit Proposals: President Obama vs. House GOP,” CTJ.org (Jul. 23, 2014).
Posted by Morgan Yuan, Esq., Associate Editor, Wealth Strategies Journal.