9 Things You Need to Know About the Republican Tax Overhaul
3. Child tax credit increased
The new tax plan increases the child tax credit from $1,000 to $2,000 per child with about $1,400 of that being refundable.
The child tax credit was an issue of contention. Trump and Republican leaders initially opposed the change, but Florida's Marco Rubio threatened to vote against the bill if it were not included.
Although the compromise of a $2,000 child tax credit was accepted by Rubio, critics argue that some of the poorest American families will not be able to fully utilize the child tax credit.
The left-leaning Center of Budget and Policy Priorities argued in an analysis posted last Friday that the new child tax credit will leave 10 million children in working families with a child tax credit increase of just $75 or less.
The doubling of the child tax credit has been praised by conservative, pro-family groups such as the Family Research Council.
"The doubling of the child tax credit to $2,000 will provide immediate relief for parents and will bolster the economy further as these children become taxpayers one day," FRC President Tony Perkins said in a statement. "Strong families are the cornerstone of our society and providing relief for families with children is a major win for working low-income and middle-class families."
"The bill alleviates many marriage penalties in the tax code, which should never have been added to the tax code in the first place. We have long advocated for our government to foster the best environment for children and penalizing marriage has made no sense," Perkins added. "With this bill, many families will save thousands of dollars in their taxes next year simply due to the elimination of marriage penalties from nearly all of the income tax brackets."
