Democratic senators on Wednesday introduced legislation to expand tax credits for workers and families, saying the measure would act as a counterweight to President TrumpDonald John TrumpKoch network launches ad campaign opposing Trump’s proposed gas tax Trump laments EU ‘being so tough’ on Brexit Inslee knocks Trump for wind turbine remarks MORE‘s 2017 tax-cut law.
The bill would expand two tax credits: the earned income tax credit (EITC), which benefits low- and middle-income workers, and the child tax credit (CTC), for families with children.
“Our bill would help put more money back in the pockets of working families and set children up for future success,” Sen. Sherrod BrownSherrod Campbell BrownDems counter Trump law with bill to expand tax credits Meet the longshot yogi from the Rust Belt running for president The road to the White House still goes through Ohio MORE (D-Ohio), a lead sponsor of the bill, said in a statement.
Senate Democrats drew a contrast between their bill and Trump’s 2017 tax law, which they argue primarily benefited wealthy individuals and corporations. The law includes an expansion of the CTC, and the Democrats’ bill would expand it further to help people who didn’t benefit from the full increase of the credit under the 2017 law.
The liberal-leaning Center on Budget and Policy Priorities estimated that the new bill would lift 29 million people, including 11 million children, above or closer to the poverty line.
The measure is sponsored by more than 40 Democratic and independent senators, including Brown, Sen. Michael BennetMichael Farrand BennetSanders sets bar for 2020 Dems with ‘Medicare for all’ rollout Dems counter Trump law with bill to expand tax credits Bennet: Biden controversy no joking matter MORE (D-Colo.) and Sen. Ron WydenRonald (Ron) Lee WydenOvernight Health Care — Presented by PCMA — Sanders unveils new Medicare for all bill with backing from other 2020 Dems | White House slams Sanders’ rollout | Drugmakers, ‘middlemen’ point fingers on insulin pricing Hillicon Valley: House votes to reinstate net neutrality rules | GOP lawmakers lay into Twitter, Facebook over censorship claims | Amazon workers push company on climate | Bill targets algorithmic bias | Yahoo to pay 7M in breach settlement Treasury to miss Dem deadline for Trump tax returns MORE (D-Ore.). All three serve on the Senate’s tax-writing committee, and Wyden is the ranking member on the panel.
“We need to rewrite the tax code in a way that benefits working families – and expanding the Child Tax Credit and Earned Income Tax Credit is an effective path to achieve that,” Bennet said.
For workers without children, the bill would raise the maximum EITC amount from $530 to $2,070 and expand the age range of eligible recipients. For workers with children, the bill would increase the EITC by about 25 percent. Additionally, EITC recipients would be able to get a one-time, $500 advance of their credit.
The bill would make the CTC fully refundable, and create a new credit for families with children ages five and under. It also would provide tax relief for people living in Puerto Rico and give the IRS the authority to create standards for paid tax-return preparers.