The proposed Child Tax Credit bill currently awaiting Senate approval promises to provide much-needed financial support for low-income families. This bill seeks to increase the maximum refundable amount per child, potentially uplifting millions of children and their families.
This bipartisan legislation would, among other things, increase the maximum refundable amount per child of the Child Tax Credit from $1,600 currently to $1,900 in 2024 and $2,000 in 2025, as well as an inflation adjustment capped at $200. An estimated 16 million children in families with low incomes would benefit in the first year, with more expected to benefit in the second year.
A recent analysis conducted by IMPLAN sheds light on the far-reaching economic implications of the Child Tax Credit component of this bill, illustrating how increased household spending can stimulate GDP growth, job creation, and federal tax revenue.