Sen. Cory Booker (D-N.J.) said he’s engaged in high-level discussions about making permanent the temporary expansion to the child tax credit brought about by the American Rescue Plan that President Joe Biden has signed into law.
Booker turned to the bill’s expansion of the child tax credit (CTC), saying that 90 percent of families would see a benefit.
“We know that the child tax credit is going to directly affect 1.6 million New Jersey kids and their families, and every dollar that we invest in every New Jersey child going above the poverty line returns $7 to our communities,” Booker said.
He added that he’s talking to the White House and business leaders about making the CTC permanent.
“I’ve tried to help coordinate a full-court press in America to make the child tax credit and the Earned Income Tax Credit changes permanent in the United States of America, so we can join our industrial peers and invest in America’s children,” he said.
According to the Tax Foundation, since the American Rescue Plan allows the full credit for low-income households, it “raises marginal tax rates on these filers as they are no longer provided the credit as income rises” and this “introduces a new disincentive to work for low-income earners.”
Under the proposal, which Booker introduced with Rep. Ayanna Pressley (D-Mass.), the federal government would open a $1,000 savings account for every American child at birth, with additional deposits of up to $2,000 a year. When recipients turn 18, they could begin withdrawing the money.
“The money can be used for wealth-building things, going to college, starting a business, buying a home,” Booker said during an Instagram Live event with Pressley. “It is an effort to create generations of wealth, and the powerful thing about this is that [it] would have an incredible effect to leveling the economic playing field.”
Booker told WNYC that he’s seeking to breathe new life into the “baby bonds” program, which he promoted during his failed 2020 presidential primary run, and which didn’t gain traction in Congress when he originally proposed it.