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Americans Will Lose More Than Monthly Child Tax Credit Payments if Build Back Better Doesn’t Pass

Americans Will Lose More Than Monthly Child Tax Credit Payments if Build Back Better Doesn't Pass
Written by Publishing Team

The consequences of not passing President Biden’s spending bill are far-reaching.

Since July, eligible American families with children benefit from monthly installments under the Enhanced Child Tax Credit. These monthly payments have not only helped lift millions of children out of poverty, but have also helped many families achieve greater financial security.

The last batch of the child tax credit booster payments to hit bank accounts was halted in mid-December. President Biden had hoped those payments would continue through January.

In fact, the President’s comprehensive plan to Build Back Better includes a provision that would extend the enhanced Child Tax Credit for tax year 2022. Not only would that translate to eligible recipients getting more money from the credit, but it would also mean allowing them to receive that money in installments. monthly. (Before 2021, the child tax credit was only paid as a single lump sum in the form of a tax refund.)

House Democrats passed the Build Better plan weeks ago, and now, it needs Senate approval to move forward. But unfortunately, West Virginia Democratic Senator Joe Manchin has made it clear that he will not support the president’s spending package. Without his vote for the bill, the divided Senate may not proceed.

If this bill is not passed, it could cause problems for many families who have become dependent on monthly child tax credit payments. But that’s not the only thing families will lose if the bill does not advance.

The Build Back Better package includes a provision that would give workers four weeks of paid leave upon the birth of a child. This leave will also go for anyone who needs the care of a loved one or tends to have a medical problem of their own.

Currently, the Family and Medical Leave Act (FMLA) provides some employees with up to 12 weeks of unpaid leave per year. But while this provides protection for workers from job loss, it does not provide compensation. Many workers cannot take unpaid leave, which is why critics of the FMLA say it is a deficient.

The Build Better Plan aims to take the concept of proper leave to a higher level. But if the bill doesn’t pass, Americans can kiss that paid time off.

Cost Concerns

Senator Manchin’s opposition to “Build Back Better” stems from concerns about the costs of a paid vacation program. The cost of the four-week paid vacation proposal would be $205 billion over 10 years, according to the Congressional Budget Office.

Of course, losing paid time off would undoubtedly be a blow to many Americans. But missing out on monthly payments to the Children’s Tax Credit could, in the short run, do more harm to families. This is especially true in light of recent inflation figures.

In November, the cost of consumer goods rose 6.8% from a year earlier. And if the omicron variable affects additional supply chains, consumer prices may rise even more. As such, it’s a really bad time to draw a vital income stream from the families who have been dependent on him. But so far, it looks like this could become our very unfortunate reality.

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