Senator Josh Hawley proposes a dramatic 150% increase in the child tax credit, aiming to boost support for working families.
At a Glance
- Missouri Republican Senator Josh Hawley proposes increasing the child tax credit to $5,000 per child
- The plan would remove income limitations and distribute credits throughout the year
- Estimated cost ranges from $106 billion to $241 billion in 2025
- The proposal faces uncertain support among Republican lawmakers
Hawley’s Bold Proposal for Families
Senator Josh Hawley of Missouri has introduced a groundbreaking proposal to increase the child tax credit by 150%, potentially raising it to $5,000 per child. This significant boost aims to provide substantial financial assistance to American families, particularly those in the working class. The current child tax credit, established in 1997, offers up to $2,000 per child to approximately 40 million families annually.
Hawley’s plan includes several key changes to the existing credit structure. It proposes allowing tax credits in regular installments throughout the year, potentially providing more consistent financial support to families. Additionally, the proposal removes the $2,500 minimum income requirement while maintaining the employment requirement, making it more accessible to low-income households.
It’s time to give working families a big tax cut https://t.co/RE3U4OpzYP
— Josh Hawley (@HawleyMO) December 17, 2024
Potential Impact and Economic Considerations
The expanded child tax credit could have a significant impact on reducing child poverty rates and alleviating financial strain for millions of families. During the pandemic, similar measures were credited with lifting children out of poverty and reducing food insufficiency. Hawley’s proposal aims to build on these positive outcomes and provide ongoing support to working families.
“These are the people [who are] working class; people with families are who elected Donald Trump, and we need to deliver real and meaningful tax relief to them,” Hawley told Axios.
The plan would also apply to payroll taxes, allowing those who don’t pay income taxes to access larger refunds. This change could provide additional financial support to lower-income families who may not benefit as much from the current credit structure. However, the estimated cost of increasing the credit to $5,000 per child is substantial, ranging from $106 billion to $241 billion in 2025.
Political Challenges and Uncertain Future
Despite the potential benefits for families, the proposal faces uncertain support among lawmakers, particularly within Hawley’s own Republican party. A similar bill was previously voted down by Senate Republicans, highlighting the challenges in gaining widespread backing for such a significant expansion of the child tax credit.
Hawley believes the expansion would benefit the economy and aligns with previous calls by other Republican figures, such as Vice President-elect JD Vance, who has advocated for a $5,000 per child tax credit. The proposal has gained some traction on social media, with suggestions to further increase the credit for married couples filing jointly. However, the substantial fiscal burden associated with the plan remains a significant hurdle in gaining the necessary support for enactment.
