Jorge Castro Comments on the Future of Child Tax Credit Payments on CNBC
"Parents Can No Longer Count on Monthly Child Tax Credit Payments"
Jorge Castro, former Counselor to the IRS Commissioner during the Obama administration and Democratic Congressional tax aide, commented on the future of the enhanced child tax credit (CTC) which, without the passage of the Build Back Better Act, reverts to what it was pre-2021 – up to $2,000 per eligible child under 17, in the form of an annual tax credit. Studies found that after the monthly CTC payments started being distributed, child poverty and child hunger fell significantly throughout the country. Without the payments, experts fear that the trend will reverse, especially because the families who arguably need the money the most — those with the lowest incomes — will no longer qualify for the credit at all because they do not meet the income requirements. It is possible that Congress could pass the Build Back Better legislation that would retroactively enhance the credit for all of 2022, Castro said. To pass anything, though, Democrats will have to compromise to get all senators in agreement. "There's just the reality that you need to get to 50 votes," Castro noted. The current spike in COVID-19 cases across the country could cause Congress to rethink its priorities once both chambers return to session, Castro said. "If you significantly dial back child tax credit relief, is this the right time? That's a question that has to be asked."