Current law calculates the credit by “multiplying that taxpayer’s earned income (in excess of $2,500) by 15%.” The revisions would allow taxpayers to then “multiply that amount by the number of qualifying children.”
In his statement, Gudziak — who serves as the chairman of the U.S. Conference of Catholic Bishops’ Committee on Domestic Justice and Human Development — said the bishops “welcome the recent announcement” of the “bipartisan agreement for an enhanced Child Tax Credit.”
“The bishops have repeatedly urged Congress to pass a strengthened Child Tax Credit that prioritizes the poorest children,” Gudziak said. “This framework makes meaningful progress towards the goal of a strengthened Child Tax Credit by largely targeting improvements in the credit to the lowest-income children.”
The improved credit “will help support the well-being of families struggling to meet their basic needs and has the power to lift many children out of poverty,” the bishop added. “This is exactly the sort of policy supporting women, children, and families that Congress should prioritize.”
“We encourage lawmakers to work together to make this improved Child Tax Credit a reality for families in need.”
The child tax credit has been a part of U.S. tax policy since 1997. First established at $500, it has been raised several times since then, reaching its current $2,000 rate in 2017.