What an amazing way to start out the new year. Axios is reporting that the child tax credit is the big sticking point with Manchin. Supposedly families making up to $400,000 have been receiving the credit. If he can get that under control, he’ll vote for the bill. Anything that will bring him back to the negotiating table is a swell idea.
Sen. Joe Manchin (D-W.Va.) is open to reengaging on the climate and child care provisions in President Biden’s Build Back Better agenda if the White House removes the enhanced child tax credit from the $1.75 trillion package — or dramatically lowers the income caps for eligible families, people familiar with the matter tell Hans.
Why it matters: The holdback senator’s engagement on specifics indicates negotiations between him and the White House could get back on track, even after Manchin declared he was a “no” on the package on Dec. 19. […]
The big picture: Manchin and top White House aides traded recriminations after their negotiations fell apart — but President Biden and the senator subsequently spoke by phone late in the evening of Dec. 19.
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They agreed to continue to talk, and Manchin stayed in touch with senior White House officials over the holidays.
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One possible solution to the stalemate would be to remove the CTC from the Build Back Better legislation, which the Senate plans to pass with only Democratic votes.
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The chamber could then have a separate, focused debate during a midterm year about making the tax credits permanent.
This is glad news. This gets the year off to a good start.
Why are families making $400,000 getting a child tax credit? Seems like more welfare for the high-end earners and they already get enough breaks. I think we could do better than that and I’d have to agree with Manchin on this one thing. Maybe cap it at $100,000. Save tax credits for those who truly need it. Am I missing something?
Agree. Ifu u make that much money, u don’t need any more handouts than the rich presently get.
You’re assuming that Manchin’s actually telling the whole truth.
Going and doing some checking, married couples (filing jointly) earning $400,000 a year are limited to $2000. Let’s also remember that not all “families” are married couples; a single parent (filing as single or as head of household) can’t earn more than $200,000 a year (with the same limit).
To get the FULL credit of $3600, the income limits are $150,000 for a married couple or $112,500 for single parents.
I’m not disagreeing with the idea that it’s absurd for wealthy people to be receiving ANY of the tax credit but if Manchin is suggesting to LOWER the caps (“dramatically lowers the income caps for eligible families”), then I’ve got a feeling he’s also going to want to lower the credit itself as well. Let’s not forget this is the same jack*ss who, just a few weeks ago, was complaining that his own constituents didn’t deserve the tax credit because they’d just spend it on drugs.
But, if we really want to change things around, let’s end the Social Security cap. Starting this year, anyone making more than $147,000 does NOT pay Social Security taxes on any money over that figure; so someone making $200,000 or $500,000 or $1,000,000 pays 6.2% (or 12.4% for self-employment) on that $147,000 (meaning $9114 or $18228) and ZERO on all money above that $147,000.
Manchin is playing his games because it gives him relevance. Without them, he’s just a regular old self-serving CHEAT.