Both the House and Senate economic recovery bills would expand the federal Child Tax Credit, but there’s a major difference between them. Twelve million low-income children would benefit more from the House version: 2.2 million additional low-income children would qualify for the credit and 10 million more would receive a larger credit. The House approach would translate into an additional $3.9 billion total for very low-income families.
The difference between the two approaches occurs because the House bill counts all family earnings when calculating its Child Tax Credit, while the Senate bill only counts earnings exceeding $6,000 a year. Working families with earnings below $6,000 are therefore helped under the House bill, but not the Senate version, and other low-earning families get a larger credit under the House bill because all of their earnings are considered when the credit is calculated.
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