New Dems Call on House Leadership to Move Enhanced Child Tax Credit and R&D Tax Credit Fix in End-of-Year Package
Today, the New Democrat Coalition (NDC) called on House Leadership to prioritize the enhanced Child Tax Credit (CTC) in an end-of-year legislative package as well as to advance the Research and Development (R&D) tax credit fix. From day one, New Dems have led the charge on the enhanced CTC, one of the most impactful policies of the American Rescue Plan, and have supported policies that help American businesses compete in the global economy.
“As economic leaders in Congress, New Dems are urging House leadership to ensure that we move both the enhanced Child Tax Credit and the R&D tax credit fix in any end of year package,” said New Democrat Coalition Chair Suzan DelBene. “Both policies are essential to strengthening our economy, and we should get both across the finish line before the end of the year.”
In the letter, the Members write:
“The U.S. economy needs both innovation and opportunity. New Dems believe that we must extend the enhanced CTC so American families and children have the resources and opportunities to flourish, and also fix the punitive Republican R&D tax change to foster the competitiveness and cutting-edge innovation of the U.S. economy and American businesses. Both are critical to creating long-term, widely shared economic growth.”
Enacting a targeted, enhanced Child Tax Credit is a key component of the New Dem Action Plan to Fight Inflation. New Dems believe that when our children and families have the resources to succeed, America succeeds. The CTC provides families with financial assistance to invest in their children’s education and futures, while also helping families address the impact of rising costs and getting more parents into the workforce.
New Dems also know that the R&D tax credit is essential to increasing investments in American competitiveness and innovation. Unfortunately, Republicans made a punitive change to the tax treatment of R&D expensing that took effect this year as a pay-for gimmick in their irresponsible 2017 tax law. This change weakens U.S. economic competitiveness and threatens to stifle innovation. Congress must act to fix this issue to prevent this harmful change from undermining the historic investments President Biden and Democrats in Congress have made in science, technology, and the growth and opportunities of U.S. businesses, workers, students, and entrepreneurs.
Making smart, targeted investments in American families and supporting American businesses in the global economy are key to creating long-term, widely shared economic growth.
You can find the full letter to Speaker Pelosi, Leader Hoyer, and Whip Clyburn HERE and below:
Dear Speaker Pelosi, Leader Hoyer, and Whip Clyburn:
Over the past two years, Democrats and President Biden have delivered on our promises to the American people with historic investments in our families, communities, innovators, economy, and global alliances. From day one of this Congress, the New Democrat Coalition (NDC) has led the charge for one of the most critical and impactful policies of the American Rescue Plan (ARP): the enhanced Child Tax Credit (CTC). The enhanced CTC lifted millions of children out of poverty, gave parents the flexibility to return to work, and provided families a stronger opportunity to succeed. As Members of the New Democrat Coalition, we write today to ask that you prioritize the enhanced CTC in any end-of-year package.
New Dems are committed to supporting American families and strengthening the middle class. We know that when our children and families have the resources to succeed, America succeeds. New Dems believe in evidence-based policymaking, and the evidence couldn’t be clearer: American families and our economy benefit from the enhanced CTC. According to recent data from the Census Bureau, the child poverty rate fell from 9.7 percent in 2020 to 5.2 percent in 2021, a 46 percent decline in a single year while the enhanced CTC was in place. The 2021 child poverty rate was the lowest on record. Without the American Rescue Plan’s CTC expansion, child poverty would have been 8.1% and more than 2 million additional children would have been in poverty.
In order to build an economy that ensures every American has the opportunity to succeed, we must invest in policies that support our workers and families and help American businesses compete in the global economy. The research and development (R&D) tax credit has helped foster the competitiveness and innovation of the U.S. economy and American businesses. Unfortunately, as a pay-for gimmick for the irresponsible 2017 GOP tax law, Republicans made an onerous, punitive change to the tax treatment of R&D expensing beginning in 2022. Unless addressed, this detrimental GOP tax change will hurt U.S. economic competitiveness, stifle the innovation that has powered our economy, and undermine the historic investments President Biden and Democrats in Congress have made in science, technology, and the growth and opportunities of U.S, businesses, workers, students, and entrepreneurs.
The U.S. economy needs both innovation and opportunity. New Dems believe that we must extend the enhanced CTC so American families and children have the resources and opportunities to flourish, and also fix the punitive Republican R&D tax change to foster the competitiveness and cutting-edge innovation of the U.S. economy and American businesses. Both are critical to creating long-term, widely shared economic growth.
We look forward to working with you to ensure U.S. workers, families, entrepreneurs, farmers, ranchers, and businesses have the opportunity and resources to succeed, and lead, in the global economy. Thank you for your leadership and relentless commitment to the American people.
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