Rep. Gwen Moore, a Democrat from Milwaukee, recently voted against a tax package worth nearly $80 billion. The package aimed to expand the child tax credit, a cause that Moore has been advocating for throughout her career in Congress. However, she argued that the measure falls short in addressing the needs of the poorest families who are most in need.
Moore expressed her concerns in an interview with the Milwaukee Journal Sentinel, stating, “The proposal is an improvement, slightly. But if it’s supposed to be a child subsidy — the full credit is not provided to the lowest, lowest, lowest, poorest of the poor children. It’s an upside-down incentive.”
Despite Moore’s opposition, the legislation passed the chamber with a vote of 357-70 and will now move on to the Senate. President Joe Biden has signaled his intention to sign the bill into law.
Moore’s vote against the package is significant considering her long-standing commitment to fighting for low-income children and families. She came to Capitol Hill nearly 20 years ago with the goal of “un-deforming child support.” On the House floor before the vote, Moore acknowledged that the measure was an improvement compared to current law but emphasized that it was not a sufficient compromise. She stated, “I think we need to compromise, but we don’t need to capitulate. We’re going to expand this tax for poor children, but the poorest will be even poorer.”
The tax package, negotiated by Missouri Republican Rep. Jason Smith and Oregon Democratic Sen. Ron Wyden, aimed to expand the child tax credit over the next three years, benefiting millions of children living in poverty. However, it falls short of the one-year child tax credit expansion enacted in 2021 through the American Rescue Plan Act.
In addition to expanding the child tax credit, the package includes billions of dollars in tax credits for businesses, such as those related to domestic research and development. Some of these corporate tax credits were proposed under the Trump administration in 2017.
One specific aspect of the proposal aims to make the child tax credit more accessible for families with multiple children. It also raises the refundable portion of the credit for low-income families from $1,600 per child to $1,800 per child. Moreover, families would be able to use the previous year’s earnings to qualify for a larger credit.
According to the Center on Budget and Policy Priorities, a nonprofit organization that studies tax policy, the expansion of the child tax credit could lift around 400,000 children out of poverty and reach up to 16 million children in low-income families in its first year. In Wisconsin alone, approximately 224,000 children would become eligible for the program.
Milwaukee, in particular, has one of the highest poverty rates among major cities in the country, with just under 24% of its residents living in poverty, including more than a quarter of the city’s children.
However, despite the potential benefits of the tax package, it has faced criticism from some Democrats who argue that it fails to address the needs of the poorest families and falls short of the provisions implemented in 2021. These provisions provided a monthly credit and were expected to reach as many as 61 million children. On the other hand, Republicans have criticized the package for potentially discouraging work.
The proposal excludes families making less than $2,500 per year from being eligible for the credit. It also maintains work requirements, which have been a topic of contention between the two parties. Rep. Rosa DeLauro, a top Democrat on the Committee on Appropriations, criticized the bipartisan deal, stating that it leaves “the poorest families behind because of a policy choice.”
Moore’s opposition to the package aligns with her concerns about work requirements. She argues that tying the child tax credit to work requirements puts an undue burden on parents, especially those with young children. Moore stated, “I think we need to stop tying the CTC to work requirements, but if we need to keep some for the sake of compromise, then we need to think about what the real-world impact looks like and recognize the many demands on parents.”
Wisconsin’s delegation was divided on the bill, with Democratic Rep. Mark Pocan and Republican Rep. Tom Tiffany joining Moore in opposition. Rep. Glenn Grothman, a Republican, voted in favor of the measure, highlighting its benefits for manufacturing and the middle class.
While Moore acknowledges the positive aspects of the bill, such as allowing families with multiple children to receive more money and using prior year’s income to calculate the tax credit, she ultimately believes that the proposed changes do not go far enough to address the needs of the poorest families.
As the tax package moves to the Senate and eventually to President Biden’s desk, it remains to be seen how the concerns raised by Moore and other critics will be addressed. The expansion of the child tax credit has the potential to make a significant impact on low-income families across the country, but ensuring that it reaches those who are most in need will be a crucial aspect of its success.