In the ultimate game of political gamesmanship, Republicans and Democrats alike are using the child tax credit pawn to undercut their opponents.
Republicans are denying the Democrats the ability to claim credit for passing a popular policy proposal, and Democrats are passing blame on Republicans for opposing the expanded tax credit. The real losers in the scenario are low-to middle-income Americans with children.
Senate Republicans Oppose Bill
On Thursday, Senate Republicans opposed advancing a bipartisan bill to increase the child tax credit. The bill raises the child tax credit, ends the pandemic Employee Retention Tax Credit, and increases tax credits for businesses.
Bipartisan Bill Falls Short
The bipartisan bill needed 60 votes to advance for full Senate consideration, but it received only 48. Republican Senators Josh Hawley from Missouri, Rick Scott from Florida, and Markwayne Mullen from Oklahoma voted to advance the bill. All other Republicans opposed the measure.
Sanders and Manchin’s Opposition
Senator Bernie Sanders from Vermont and Independent Senator Joe Manchin from West Virginia opposed advancing the bill.
Vance and Others Abstain
Republican Vice Presidential Nominee JD Vance and seven other senators did not vote on the bill.
Initial Support Declines
The bipartisan measure enjoyed broad support in January 2024 but lost momentum as the legislative season continued. Republicans were concerned that the passage could be a feather in the cap for President Biden’s campaign, as the policies are popular with voters.
Concerns Over Work Requirements
Republicans also cite concerns that the changes would not contain sufficient work requirements for child tax credit recipients.
Schumer’s Strategic Move
As the measure all but petered out, it reemerged as a priority for Senator Chuck Schumer as Vance took the national stage to demean Democrats as “childless cat ladies.”
Forcing Republican Opposition
Capitalizing on that argument, Schumer decided to bring up the expanded child tax credit bill to earn a win for Democrats and force the Republicans to reveal to voters their opposition to the expansion, all while Vance touted his party’s family values.
Schumer’s Critique of Republicans
Schumer said, “Senate Republicans love to talk about how they are the party of family and business. So it’s very odd to see them come out so aggressively against expanding the child tax credit and rewarding business with the [research and development] tax credit.”
Wyden Echoes Schumer’s Remarks
Senator Ron Wyden from Oregon, the Chairman of the Senate Finance Committee, agreed with Schumer’s remarks, saying, “Republicans just haven’t been willing, as I said, to follow through with their rhetoric. The rhetoric is that they care so much about kids and family. But then when you look at what happened in February, in March, in April, in May, in June– you go on and on– they haven’t been there.”
Crapo’s Pushback
Republican Senator Mike Crapo from Idaho pushed back, saying that Senate leaders are aware of the GOP concerns with the legislation and accusing the Democrats of withholding particular business deductions to force the Republicans to continue opposing the underlying bill.
Crapo said, “There is no more obvious show-vote than the one…today, immediately before the August recess…to fabricate a narrative that Republicans don’t support small business, children, or alleviating poverty.”
Grassley’s Concerns About Future Legislation
Republican Senator Chuck Grassley from Iowa also alluded to the fact that if this bill passed now, it could impede a future Trump administration from immediately re-enacting Trump’s tax legislation from 2017, which Senate Republicans want to renew.
Additional Opposition Claims
Republican opposition to the bill also claims that the work requirements are insufficient and that non-Americans could qualify for the credit.
