Sen. Michael Bennet, D-Colorado, was among a group of Democratic lawmakers who introduced a bill to expand the current Child Tax Credit. Dubbed the American Family Act, the bill would create a new Young Child Tax Credit of $300 per month for children under 6, up from the current maximum of $2,000 per year. It would also increase the maximum Child Tax Credit to $250 per month for children ages 6 to 17. Married couples making up to $200,000, and single parents making up to $150,000, would be eligible for credit.
Notably, the bill would make both tax credits fully refundable. Under current tax law, the credits only begin to phase in after a taxpayer has earned $2,500, at a rate of 15 cents per additional dollar earned. Due to those restrictions, 27 million low-income children aren't eligible for the maximum available credit because their parents don't earn enough.
"I've met with parents across Colorado who tell me the paychecks they bring home aren't enough to support their families," says Bennet, who was quoted in a statement.