CV NEWS FEED // Freshman Sen. Jim Banks, R-Ind., introduced a bill that would amend the 1986 Internal Revenue Code to enhance child tax credits (CTC).
The Washington Examiner reported that the bill would expand the CTC from $2,000 per child to $3,000 per school-aged child and $4,200 per younger child.
While Democrats introduced a similar bill, titled the American Family Act 2025, their legislation provides tax credits to those who are not paying income taxes. Banks’ version of the bill requires that families make at least $20,000 to qualify for a CTC.
The Washington Examiner also reports that Banks’ bill would offset the increased CTC by reducing other tax breaks and abolishing the deduction for state and local income taxes, which, the Examiner states, mainly benefits the wealthy.
Banks’ legislation would abolish the current Child and Dependent Care Tax Credit, which only subsidizes formal daycare and is only claimed by 12% of parents.
With the revised CTC, parents would be able to choose to spend the credit, whether that is on daycare or other needs.
“Alternatively, parents could use the money to work less, hire babysitters or other informal daycare, move closer to grandma, or pay for someone to clean the house and mow the lawn,” the article stated, “freeing up Mom and Dad to take care of the child.”
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