Dads Caucus

WASHINGTON, D.C. – Today Congressman Jimmy Gomez (CA-34), Chair and Founder of the Congressional Dads Caucus, released the following statement on the bipartisan tax package that includes enhancements to the Child Tax Credit (CTC):

“As we head into the next vote, our Dads Caucus members overwhelmingly support the bipartisan tax package that will provide relief for 16 million children and pull an estimated 400,000 kids out of poverty. This is a significant step towards our goal of ending child poverty once and for all,” said Gomez. “In my role as chair of the Dads Caucus and as a father myself, I know this package must only be the beginning for the CTC—families need direct monthly checks, and the lowest-income families must be included.

“The updated CTC will effectively double the credit for low-income parents with two children, allows parents to use previous years’ income to get the highest possible credit, fixes inequities in the 2017 GOP tax scam and, for the first time, will increase the maximum credit according to inflation.

“The Dads Caucus will continue to fight to reinstate and expand the 2021 Enhanced CTC, the gold standard passed by Democrats that cut child poverty by nearly half. Congress cannot stop improving the CTC until it serves all eligible families equitably and delivers the most impact to eliminate child poverty.”

Background:

The Wyden-Smith Tax Plan –

·         Changes policy to allow parents with multiple children to claim the full credit at a lower income—effectively doubling the credit for low-income parents with two children and tripling it for three children;

·         Adds a look back provision that allows parents to use a previous year’s income to maximize the value of their credit;

·         Fixes an unfair provision from the 2017 GOP tax law, by allowing lower-income families to claim the full credit at the same level as wealthier families for the 2025 tax year; and

·         For the first time, includes provisions to eventually increase the maximum CTC according to inflation.

The 2021 Enhanced CTC cut child poverty by nearly half. and was profoundly successful because it:

• had no minimum income requirement,
• ensured the lowest income families got the full credit as a refund, and
• delivered direct monthly checks to families.

Rep. Gomez believes the Child Tax Credit is most effective and impactful for lower income families when it is fully refundable and advanceable. Rep. Gomez will continue advocating for those changes.

·         Monthly Checks: Giving CTC payment to families on a monthly basis, instead of as a lump sum, is a way to help offset regular food and housing costs for parents. Families need this money urgently, and making payments monthly instead of annual does not change or add to the cost of this bill.

·         Full Refundability: Low-income parents who are between jobs, below a taxable income or do not owe additional taxes currently cannot receive the full CTC benefit. These low-income families, who often need this credit most, should receive the same benefits as their higher-income counterparts.

Rep. Gomez called for a similar tax deal to be made in 2022, urging Congressional leadership to not advance any corporate tax breaks without also implementing the enhanced child tax credit.

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