Rep. Richard Neal wants tax credit extensions included in next relief package | Local News – About Your Online Magazine

US Representative Richard Neal, D-Springfield, wants the expansion of two tax credit programs to be included in the next coronavirus relief package.

Neal, who chairs the Chamber’s Ways and Means Committee, called for the expansion of earned income tax credit and child tax credit to be part of the next stimulus project, The Hill reported friday. Both tax credit programs are aimed at helping low- and middle-income families.

The White House did not include the expansion of any of the tax credits in the proposal it submitted last week. Democrats cited their exclusions as the main flaw in this proposal.

According to The Hill, Neal’s comments were made during discussions between House Speaker Nancy Pelosi, D-Calif., And Treasury Secretary Steven Mnuchin about the proposed aid package. Pelosi has repeatedly criticized the Trump administration for not proposing expansions of the labor income tax credit and the child tax credit.

“The decision to exclude these provisions – including the Democrats’ proposal to make some of the benefits available immediately – means that workers and their families will lose the thousands of dollars they need to rebuild in the coming months,” Neal said in a statement. “Along with an extension of emergency unemployment compensation to 2021, these anti-poverty fiscal measures should be in the next stimulus package.”

A proposal that would increase the eligibility and value of the income tax credit earned for childless workers for 2020 was included in the $ 2.2 trillion aid package that House Democrats approved this month. It would also allow taxpayers to use their 2019 income to claim credit on their 2020 tax returns, instead of their 2020 income, which would help prevent people from receiving less credit this year because they lost their jobs.

The measure would also make the child tax credit fully refundable by 2020, which would allow low-income families to receive the full amount of the credit.

A broader expansion of the child tax credit was included in an earlier and larger version of the House Democrats’ coronavirus relief proposal, approved in May.

Neal said the White House proposal “does not include the robust assistance that Americans need to survive the current COVID-19 crisis.”

Paula Fonseca