Richard Rubin reports in the Wall Street Journal:
House Democrats included child-credit expansions in their coronavirus relief legislation and insist on keeping those provisions. They are poised to turn that idea into law quickly if they win control of the Senate following the Georgia runoffs in January.
But even if Republicans hold the Senate, lawmakers see a possible deal, either in a near-term economic-relief law or a bipartisan tax agreement. That’s because the credit — though not every detail of Democrats’ plans — has Republican support among low-tax, pro-family conservatives looking to continue expanding the party’s appeal to working-class households.
Proposals to enlarge the child tax credit typically focus on making the maximum value of the credit (currently $2,000 per child) available to parents of 17-year-olds (it currently runs out at 16), and allowing people to claim the credit even if they have no income-tax liability. The enlarged credit should also be made permanent — it is set to drop to $1,000 per child in 2025 — and protected against inflation. I made the case for such changes in NR last year.