Bipartisan efforts to expand the child tax credit pick up the pace. The Problem Solvers Caucus plans to establish a subcommittee to examine the expansion of the $2,000 per child credit. If Congress does not take action, the credit will be halved and apply to fewer households after 2025. The Congressional Budget Office estimates that making the current child tax credit (CTC) permanent could cost more than $60 billion a year through fiscal 2033; expanding the credit to its 2021 level could cost over $100 billion per year.
Public support appears strong, too. A new poll from the First Five Years Fund says that 59 percent of part-time or non-working parents say they’d return to full-time work if they had access to affordable, high-quality child care. The survey also showed bipartisan support for increasing the CTC and the child and dependent care tax credit.
Speaking of polls… In Colorado, Democratic Gov. Jared Polis’ favored property tax ballot measure is a tossup. Voters will decide in November whether to approve a 1 percent increase in the Referendum C cap, which allows the state to retain and spend more revenue than the limit set by the Taxpayer Bill of Rights (TABOR) constitutional amendment (approved in 1992). A companion ballot measure would provide a tax refund of $873 per single filer.
Michigan Gov. Whitmer signs bills aiming to increase the supply of affordable housing. The current brownfield development program reimburses developers for costs associated with redeveloping contaminated, blighted, or historic properties through tax increment financing. The new laws expand Michigan’s brownfield development fund to support housing development.
Canada’s digital services tax is still set for 2024. Despite continued US opposition, the Canadian government still plans to introduce a 3 percent tax on revenue earned by large technology companies in Canada in 2024. The tax will apply retroactively to Jan. 1, 2022, unless the Organization for Economic and Cooperative Development (OECD) ratifies a global tax agreement. Meanwhile, the OECD issued new guidance that will pause enforcement of its 15 percent global minimum tax until 2026.
For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at [email protected].
Posts and comments are solely the opinion of the author and not that of the Tax Policy Center, Urban Institute, or Brookings Institution.
- © Urban Institute, Brookings Institution, and individual authors, 2022.