Senator John Thune, ranking member of the Finance Subcommittee on Taxation and Internal Revenue Service Oversight, holds a hearing to assess the effects of the Child Tax Credit over the course of its 25-year history.
The Tax Cuts and Jobs Act of 2017 provided qualifying families with a maximum $2,000 credit per dependent child, up to the age of 16. That expanded credit is set to expire and revert back to pre-Tax Cuts beginning in 2026, and families in South Dakota and across the nation would see their benefits revert back to 2017 levels if Congress does not act.
At the hearing Thursday, Thune noted that the modifications made in 2021 turned the credit into universal basic income for families with children, removing the work incentive and harming workforce participation, which he says is counterproductive.
Thune says child tax credit is among the top issues to be discussed this year