February 1 — The United States House of Representatives approved a $78 billion tax package that would temporarily expand the child tax credit and restore tax benefits for a number of businesses.
The child tax credit would expand to $2,000 per child.
The bill was bipartisan legislation and passed 357 to 270 in the House.
The package would still need to pass the Senate before it would make it to President Joe Biden’s desk.
Pat Ryan of NewsTalk 103.7FM predicted, “I don’t think that’s going to be the case. Is it tied to anything?”
Attorney Clint Barkdoll said, “It’s not tied to anything.”
Our own Congressman John Joyce was a no vote on this bill.
Barkdoll said, “It was a really interesting mix of no votes. It was some very conservative Reps and some very liberal Reps all had some complaints about this. But after the House passed this, you had some Republican Senators come out, including Chuck Grassley on the record, saying he liked this legislation, but he didn’t want to vote for it because he thought this would help Joe Biden in an election year. It seems like the party often eclipses what’s good, maybe for the public.”
There were issues on both sides with some aspects of the legislation.
Barkdoll said, “It’s funny when they roll these things out they say it expands the child tax credit for lower income families and then you read the details. A married couple qualifies for this as long as they make less than $400,000 a year. Well, we all know, if you’re a married couple in this area, and you’re making $400,000 a year that’s not low income, but that’s the threshold that’s in this bill. So we’ll see what the Senate does with it. They could take this up any day now and if they do pass it, certainly Biden is going to sign it.”
Michele Jansen of NewsTalk 103.7FM pointed out, “I don’t know why Chuck Grassley would say such a stupid comment out loud because of course they’re going to run with that and say, look how Republicans just want to hurt families. But secondly, this is the problem. We had all this COVID money that came flooding in and yes, they boosted all of those kinds of things during COVID and now it’s the same old story. Once you give something you can’t take it back. We are so in trouble with the money that’s just pouring out that comes from the production of nothing, government printing it essentially or borrowing it. This is just more of that. While, yes, the families who are going to get it are gonna cheer. They’re going to be so happy to get that, but at the same time, we are walking down this path of utter economic destruction. I can’t believe the Fed is thinking of cutting rates. Of course they’re thinking of it because we’re catering to certain segments of the economy to make things look good, or make people happy. But we’re really putting ourselves just farther and farther and farther in the hole.”
Barkdoll agreed, “That’s my concern with all of this stuff, not only on the child tax credits, but even on some of these business tax deductions. Because remember, at the end of next year, all of the Trump tax cuts expire and we don’t know what Congress is going to do about that. If they do nothing, the entire tax code reverts to the pre Trump tax cut laws. There’s a lot of concern about where all that is going. Getting back to this child tax credit issue. If you do not have tax liability that reaches the threshold of the child tax credit, you really will get a check in the mail, based on however many children you have, and that’s of course, one of the criticisms of this, but it feels like this has become part of our system. Then once people rely on it, you’ll never take it away. Not only is it going to $2,000, it then gets indexed to inflation, starting next year, so unless it would get repealed, in theory, this goes in perpetuity and it would just keep getting adjusted year after year for inflation.”