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of an effort by some lawmakers to ensure that# more American families can If the proposal becomes law, it would# gradually increase the credit from## $1,600 to $2,000 per child in 2025 and# allow lower-income families to re a refundable tax credit for each child.# Right now, many only earn one tax credit## for all of their children combined.# It would also adjust the credits for## inflation and increase what's available# to those who pay little to no income t Sharon Parrott is the president# of the Center on Budget and Policy## Priorities.

That's a progressive# think tank that studied this deal.

Thanks so much for coming in.

SHARON PARROTT GEOFF BENNETT: S monthly payments that some Americans received# under President Biden' but you still support this proposal.

Why?

SHARON PARROTT: Yes, that's right.

So t the entire credit available to low-income# families, regardless of their earnings.

It## increased the amount of the credit for all# families, and it provided the credit on a## monthly basis.

And that is a very strong policy# that lifted millions of people out of poverty.

And this is smaller than that, there's# no question.

But it still is helping## 16 million children who now don't get# a full child tax credit because th family's incomes are too low.

And# it's going to lift about 500,000,## half-a-million, children out of poverty# in 2025 when it's fully in effect.

So it is an important, meaningful step forward# that provides real help to families today.

And,## yes, we should continue to work# toward a more robust child tax## credit that can do even more# to lift kids out of poverty.

GEOFF BENNETT: I want to ask you about# some critici The Wall Street Journal op-ed board# says the package w parents' incentives to work to# receive the credit since they## wouldn't have to earn as much income# to qualify.

Do you see it that way?

SHARON PARROTT: So let's be clear about what# this proposal does.

It says to a mom with a## couple of kids who's working as a home# health aide or a food server that they## are going to be able to get a little# bit more in their child tax credit.

They are going to be able to get maybe $1,000# more than they get under current law.

That money that she can use to pay a utility bill,# to fix her car so she can keep going to work,## to buy diapers, to buy food at the# grocery store.

This is providing real,## meaningful help to working families# that right now are shut out of the## full child tax credit because# their earnings are too low.

We have an upside-down policy right# now where we give the least help to## the families who need it the most.

Now,# let's be clear.

Under this package,## families still have to have earnings in order# to qualify for the credit.

And the credit,## unfortunately, actually still phases in as# earnings rise.

So families with some of the## lowest incomes will either not qualify for the# credit at all or still qualify for a small credit.

But it is providing meaningful# help to 16 million children.

GEOFF BENNETT: The Committee for a Responsible# Federal Budget in a written statement pr this proposal for finding offsets to# help pay for it, but it also said it## could still set the stage for substantially# more debt over time.

That's a direct quote.

And there's the thought that, given the popularity# of this proposal, that it could become permanent## and cost billions of dollars and add billions# of dollars to the federal deficit over time.

SHARON PARROTT: Yes, let's be clear# about what this proposal does.

There's a series of corporate tax breaks and it's# paired with this modes of the child tax credit.

These provisions in# this package are temporary and, as you said,## are fully paid for.

If Congress comes back to make# them permanent, of course, they would cost more.

And, at that point, Congress should# pay for them.

They should find offsets.## And that's absolutely possible.

If we# ask high-income people and profitable## corporations to pay a fair amount of# tax, we can invest in low-income kids## in ways that pay off for them, their# families and the country as a whole.

GEOFF BENNETT: Sharon Parrott, president of# the Center on Budget and Policy Priorities,## thanks so much for your# insights.

We appreciate it.

SHARON PARROTT: Thank you.

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