Show-Me State Times

U.S. Senator Josh Hawley has put forward a proposal aimed at expanding the Child Tax Credit (CTC) to support working families. The proposal seeks to reward work and provide financial relief by putting tax dollars back into the hands of parents.

Senator Hawley stated, “President Trump won with the support of working people with kids.” He added, “Next year’s tax bill should provide them a big tax cut,” advocating for his CTC proposal's inclusion in the upcoming reconciliation bill.

The proposed changes would significantly alter the current structure of the CTC. Key elements include increasing the maximum value of the credit from $2,000 to $5,000 per child. The plan also allows parents to use this credit to offset payroll tax liability, in addition to income taxes, which aims to enhance its value for working-class families.

Further modifications include removing the earnings threshold so that parents can begin accruing credits from their first dollar earned. This change is intended to make it easier for more families to benefit from the CTC.

Additionally, under Hawley's proposal, parents could earn credits during pregnancy and choose to receive these benefits as regular installments throughout the year rather than waiting until tax season.