Senior Director of Federal Tax Policy
The Republican tax framework raises the Child Tax Credit (CTC) but the increase is non-refundable, meaning only families with high enough incomes to owe federal income taxes would benefit — leaving out millions of low-income working families with children. Justifying the proposal, White House National Economic Council Director Gary Cohn wrongly suggested that boosting low-income working households’ CTC would discourage work:
[The existing credit] is refundable today and will stay refundable. The additional money that we put into the credit will be non-refundable. We want to encourage people to work. We want to have people have taxable income to take the credit against.
That’s a faulty excuse for excluding the poorest children in working families.