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Expiration of child tax credits hits home

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Expiration of child tax credits hits home

| Business News Today | abc News

Through JOHN RABY, FATIMA HUSSEIN and JOSH BOAK, Associated press

CHARLESTON, W.Va. — For the first time in six months, families on Friday are going without a monthly child tax credit installment — a program that was meant to be part of President Joe Biden’s legacy but is rather appeared as a flashpoint on who is worthy of government support.

Retiree Andy Roberts, of St. Albans, West Virginia, relied on the checks to help raise his two young grandchildren, whom he and his wife adopted because the birth parents are recovering from drug addiction.

The Roberts are now at $ 550 a month. That money helped pay for Girl Scouts, ballet and theater lessons, and children’s shoes, which Roberts says are more expensive than adult shoes. The tax credit, he said, was a “godsend”.

“It’ll make you tighten your belt, if you have something to tighten,” Roberts said of the lost payments.

The monthly tax credits were part of Biden’s $ 1.9 trillion coronavirus relief package – and the president had offered to extend them for a full year as part of a separate program-focused measure economic and social.

But Democratic Senator Joe Manchin, from the home state of Roberts in West Virginia, opposed the extension of credit, fearing that the money would discourage people from working and that any additional federal spending would ‘fueling inflation which has already climbed to almost 40. year high.

According to IRS data, 305,000 West Virginia children benefited from extended credit last month.

Manchin’s opposition in the equally divided Senate derailed Biden’s social spending program and in January expired the expanded tax credits that came out in the middle of every month. It reduces the income of families at the precise moment when people are grappling with higher prices.

However, families have only received half of their 2021 credit on a monthly basis and the other half will be after they file their taxes in the next few months. The amount of credit will be reduced in 2022, with full payments only made to families who have earned enough income to owe taxes, a policy choice that will limit benefits for poorer households. And the credits for 2022 will only come after people file their taxes early in the next year.

Families in West Virginia interviewed by The Associated Press highlighted the increase in their grocery and gas bills and said they would need to get by with less financial cushion than there is. some months.

Expiration of child tax credits hits home

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