News Round Up: July 29, 2024
Top Story: The U.S. Senate failed to advance a major tax package that aimed to re-expand the federal Child Tax Credit (CTC) for lower-income families and cut taxes for businesses. The legislation fell short, with 48 in favor and 44 opposed, missing the 60 votes needed to progress the bill. (CBS News)
- #ICYMI: Tax Credits for Workers and Their Families (TCWF) spotlights the first-ever Illinois CTC, making Illinois the 15th state to adopt a state-level CTC. The new tax credit is valued at 20% of the federal Earned Income Tax Credit (EITC). (Tax Credits for Workers and Their Families)
- New Jersey will offer the no-cost Internal Revenue Service (IRS) Direct File option for the 2025 tax filing season. The Direct File program is a free online tool that has already helped 140,000 taxpayers claim over $90 million in refunds. This impressive outcome highlights the success of the tool’s pilot phase during the last filing season in 12 states, as reported by the U.S. Department of Treasury. (U.S. Department of Treasury)
- New York Gov. Kathy Hochul (D) announced recent plans to send up to $330 per child to families who received at least $100 from the 2023 Empire State Child Credit. The additional funds are anticipated to help one million New York families. (Rochester First)
- Sen. Katie Britt (R-AL) and Sen. Tim Kaine (D-VA) unveiled two bills aimed at expanding federal funding in childcare. The proposed legislation includes making the federal Child and Dependent Care Tax Credit (CDCTC) refundable and increasing the credit’s value from $3,000 to $5,000 for families with one child. (Alabama Political Reporter)
- The Institute on Taxation and Economic Policy (ITEP) released a new comprehensive study to inform ongoing immigration policies and highlight the significant economic contributions made by undocumented immigrants. The report found that undocumented immigrants pay substantially more in taxes than their U.S. counterparts and are often barred from meaningful tax programs such as the CTC and EITC. (Institute on Taxation and Economic Policy)
- ITEP released a recent recap of the latest state-level tax credit updates since the start of the 2024 legislative season. Four states – Colorado, Illinois, New York, and Utah – have expanded or strengthened refundable state tax credits. Additionally, Washington, D.C. is currently discussing the introduction of a new Child Tax Credit (CTC). (Institute on Taxation and Economic Policy)
- The Center for American Progress compared Sen. Ted Cruz’s (R-TX) proposed “No Tax on Tips Act” to the 2021 American Rescue Plan’s expanded federal EITC and CTC. The analysis found that Senator Cruz’s legislation is an ineffective approach to supporting low- and moderate-wage workers and increases the risks of tax abuse by the wealthy. (Center for American Progress)
- The First Five Years Fund (FFYF) released a guide that details the key aspects of the Promoting Affordable Childcare for Everyone (PACE) Act introduced earlier this year, which includes an enhanced federal CDCTC. (First Five Years Fund)