MONEYWATCH Biden budget would cut taxes for millions and restore breaks for families

[havoc00]

President Joe Biden's proposed 2025 budget includes some perks for millions of families and low-income workers as well as senior citizens, including reviving a program that lifted millions of children out of poverty during the pandemic.

The budget, released Tuesday, aims to pay for those tax breaks by raising taxes on corporations and the rich. One proposal, for instance, would completely reverse one of the cuts implemented by former President Donald Trump, whose 2017 Tax Cuts and Jobs Act mostly eased the tax burdens on businesses and the nation's highest earners.


Biden's budget would revive the expanded Child Tax Credit (CTC), which got a one-year overhaul during the COVID-19 outbreak.

The CTC isn't a new tax credit — it's been around since the 1990s. But as the nation struggled to emerge from the pandemic in 2021, lawmakers expanded the $2,000 credit to as much as $3,600. As part of that expansion, families received half of the CTC in monthly checks over six months, providing them with as much as $300 per child for each of those months.

That expanded tax benefit, which proved to be immensely popular with families, also helped lift millions of kids out of poverty. Once it expired in 2022, the poverty rate for children soared.

Under the Biden budget, the expanded CTC would be restored. Like in its pandemic form, the expanded credit would again provide $3,000 per child for kids six years and older and $3,600 for each child under six, instead of its current $2,000 limit.

Parents who qualify for the CTC would also again receive monthly checks from the IRS. Providing monthly checks represents "a more practical solution to ensure that families can receive relief when they need it most instead of in one lump sum at the end of the year," the Treasury Department said Monday in a statement.

Currently, families receive the CTC once per year, when they claim it on their annual tax return. It's typically reflected either in a tax refund or by reducing their tax liabilities.

How would low- and middle-income workers get a tax break?
Biden wants to expand the Earned Income Tax Credit, or EITC, a tax credit that is aimed at workers with incomes below about $64,000 annually. Under his proposal, more people without children and senior citizens could receive the credit.

In its current form, the EITC is mostly geared toward low- and middle-income families with children. For instance, workers without children can qualify for the EITC, but they are limited to a maximum credit of $600. By comparison, a family with three kids can get as much as $7,430, according to IRS rules.

The Biden plan also would expand the EITC to include more low-wage workers without kids, as well as older Americans. On average, the expansion would cut taxes by $800 each for 19 million individuals and couples who are working, the White House said. That would include 2 million workers over age 65 and 5 million adults 18- to 25-years-old, it added.

https://www.cbsnews.com/news/biden-b...who-qualifies/

[poison]

Gotta buy those votes.

[kcadrenalin]

Lol

[NYPat]

Speaking of taxes, don't Trump's temporary tax cuts for regular Americans expire next year? (don't worry Trumpers, Trumps tax cuts are permanent)

[frankdtank20]

The one part that's ridiculous is expanding the EITC for childless people who aren't elderly. Otherwise, not bad. The fun part is they'll claim they're going to pay for it by increasing the corporate tax, which is exactly how you end up collecting less, especially after the first year. I'd say slim chance of passing but we'll see. If it does pass it will in many cases make sense for married couples to file separately.

[leafs43]

Trying to buy back the black vote.

[havoc00]

Trying to buy back the black vote.

The big guy is a master politician

[SmithMachineGuy]

That's not cutting taxes. That's giving more money to people who don't even pay taxes in the first place.

[havoc00]

That's not cutting taxes. That's giving more money to people who don't even pay taxes in the first place.

Trickle down Bidenomics

[ClivesTriceps]

Speaking of taxes, don't Trump's temporary tax cuts for regular Americans expire next year? (don't worry Trumpers, Trumps tax cuts are permanent)

LMAO, the booger eating moron got banned.

Amazing how those tax cuts don't mean chit when Biden has more than made up for the cost of living by screwing the economy, eh son?

[havoc00]

LMAO, the booger eating moron got banned.

Amazing how those tax cuts don't mean chit when Biden has more than made up for the cost of living by screwing the economy, eh son?

Damn banned again

[ClivesTriceps]

Damn banned again

And he'll come back saying he's only been banned once, LMAO

[InPhase]

$300 a month per child, for 6 months is going to lift children out of poverty? That barely covers their increased cost of living expenses over the last 2 years due to Bidenflation.