FGA Research Paper Sheds Light on How Harmful the Biden Child Tax Credit Really Is
Naples, FL—Today, the Foundation for Government Accountability (FGA) released a research paper that explains harmful changes the Biden administration made to the Child Tax Credit program.
The paper breaks down how the changes made by the Biden administration have made the Child Tax Credit resemble welfare more than traditional tax credits, with a price tag of $1.6 trillion over the next decade. Increased payment amounts, relaxed eligibility requirements, and monthly distribution have transformed the Child Tax Credit program into a set of payments that disincentivizes work—and will have serious consequences at tax time next year.
Research also found that these enhanced payments closely resemble past failed government experiments that ended in disaster, and that Congress can expect an untold number of administrative headaches from the Biden changes.
“With the tax credits available to almost every parent in the nation and less than half of the value of this program actually going to households in poverty, Congress must fix the Biden administration’s disastrous changes to this program,” said Hayden Dublois, Senior Research Analyst at FGA. “Between the disincentives to work, clawbacks of payments, and administrative challenges, this inflated benefit program is irresponsible and will unnecessarily hurt millions of Americans’ wallets.”
FGA encourages Congress to protect truly needy families by allowing the Biden Child Tax Credit to expire at the end of 2021.
The Foundation for Government Accountability (FGA) is a non-profit, multi-state think tank that specializes in health care, welfare, work, and election reform. To learn more, visit TheFGA.org.