Rescue plan

Here’s why Mitch McConnell was terrified of America’s bailout

A forthcoming book suggests Senate Minority Leader Mitch McConnell (R-KY) was baffled by the enhanced child tax credit because he believed the welfare program would be too popular for Republicans to cut it , even if they eventually regained control of Congress.

As reported by Initiated, This won’t pass complaints that “if Americans got used to the benefits of the new law, [McConnell] suggested, it would become politically untenable for Republicans to repeal its most popular measures.

The report continues: “The country, McConnell lamented, could pass a tipping point to become a European-style social welfare state – exactly the outcome it has spent its career arguing against.

During the second half of last year, the American Rescue Plan-approved program provided eligible parents with a payment of $250 or $300 for each child each month. However, largely due to opposition from Senator Joe Manchin (D-WV), the enhanced credits were never extended through the Build Back Better legislation. The conservative-leaning lawmaker claimed that would only discourage people from working and that any additional federal spending would make record inflation even worse.

Without Building Back Better, the maximum child tax credit has been reduced by $1,000 per school-aged child and $1,600 per child under six. In addition, millions of families with the lowest incomes in the country are once again ineligible for credits.

Meanwhile, Sen. Mitt Romney (R-UT) has proposed his own version of a monthly cash benefit program. Known as the Family Security Act, it aims to give eligible families with children under five $350 per child and families with children over $250 per child. Unlike the Democrats’ proposals, Romney’s plan comes with work demands tied to payments, which is likely in an effort to garner more bipartisan support in an evenly divided Senate.

Amid the absence of improved federal benefits that have helped keep millions of children out of poverty, analysts at the Center on Budget and Policy Priorities (CBPP) are now pushing state governments to create their own version of credits. child tax.

“Child tax credits are an important way for policymakers to help families make ends meet, help children thrive now and in the future, and help families and communities to recover from the pandemic,” the analysts wrote. “The federal credit should be expanded, and states should also create and improve their own CTCs (among other tax credits that help low-income households). … Federal and state child tax credits are an effective way to target tax cuts to the people and communities who could use the aid the most.

Ethen Kim Lieser is a Washington State-based finance and technology editor who has held positions at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow him or contact him on LinkedIn.

Picture: Reuters.