Chairman Smith: “Tax Relief for American Families and Workers Act builds on the Child Tax Credit signed into law by President Trump, including the work requirements, and gives more help to families crushed by the spike in prices sparked by the spending in the American Rescue Plan.”

WASHINGTON, D.C. – Three years after the U.S. House of Representatives first voted on President Biden’s so-called stimulus (also known as the American Rescue Plan Act or ARPA), the Tax Relief for American Families and Workers Act rejects ARPA’s failed policies, like the lack of work requirements, and keeps the Child Tax Credit structure in line with the increased Trump-era credit. Just like the 2017 GOP tax cuts, the tax relief package requires taxpayers to earn at least $2,500 to qualify for the credit. Once a taxpayer meets that minimum threshold, the credit phases in consistent with the Trump tax reforms. In addition, the credit preserves the refundability structure in the 2017 Republican tax reform. 

Instead of continuing the harmful policies in the “American Rescue Plan,” the CTC in the Tax Relief for American Families and Workers Act rewards work and helps families:

• Keeps work requirements from the 2017 Trump tax reform. Multiple independent studies show the CTC changes in the Tax Relief for American Families and Workers Act encourage more Americans to join and stay in the workforce.
• Retains GOP tax reform’s structure for refundability with only incremental increases to the refundable portion of the credit.

Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement to mark the third anniversary of the House’s first vote on ARPA:

“Republicans successfully fought to restore bipartisan pro-work, pro-family provisions of the Child Tax Credit that Democrats abandoned in the so-called American Rescue Plan. That is why the Tax Relief for American Families and Workers Act builds on the Child Tax Credit signed into law by President Trump, including the work requirements, and gives more help to families crushed by the spike in prices sparked by the reckless spending in the American Rescue Plan.”

Child Tax Credit in Tax Relief for American Families & Workers Act promotes life and supports working parents:

• Indexing the credit to inflation will provide working parents with more breathing room to provide for their families.
• Ending the penalty against larger, growing families embraces a culture of life and promotes strong communities.

American Rescue Plan Sparked Inflation Crisis

$2 trillion of reckless spending sparked higher prices which has led to higher interest rates, all hurting family budgets and forcing too many families and small businesses to make tough choices about their future:

• A study from the Federal Reserve Bank of San Francisco found that the American Rescue Plan, including the dismantled Child Tax Credit, fueled inflation.
• Prices are up 17.9 percent since Joe Biden became President. 
• Inflation was 1.4 percent when Biden took office, but it rose to 9.1 percent by June of 2022, the highest level in 40 years.
• Real wages are down 4.4 percent since Biden became President. 
• Billions of dollars wasted on checks to prisoners and illegal immigrants, and more.

Correcting the Record: Child Tax Credit Maintains Taxpayer Protections

The Tax Relief for American Families and Workers Act maintains critical taxpayer protections:

• Social Security number is required to claim the CTC.
• Taxpayers will quickly receive any updates to their tax refunds once the bill becomes law.
  • At a Ways and Means hearing, IRS Commissioner Daniel Werfel assured that the IRS will send any CTC refund adjustments within weeks after the bill is signed into law. He said that the agency would work “to be closer to six weeks” in a six to twelve week window for sending refund checks.