How would Trump's budget bill affect the child tax credit?
Share this @internewscast.com


(NEXSTAR) President Donald Trump’s big tax cuts bill includes changes that would affect various groups of Americans including parents and guardians.

Should Trump succeed in swaying Republican holdouts and passing the 1,116-page bill as-is, there is good news for child tax credit beneficiaries, who would see a temporary $500 increase to $2,500 per child.

The bill also includes additional tax breaks, such as a temporary $2,000 boost to the standard deduction, bringing it to $32,000 for joint filers.

Furthermore, the Trump administration seeks to follow through on a campaign promise not to tax tips, overtime and interest on some auto loans.

‘MAGA’ kids $1,000 savings accounts

“MAGA” is shorthand for Trump’s signature line, “Make America Great Again.” But in this case, it means “Money Accounts for Growth and Advancement.”

For parents or guardians who open new “MAGA” accounts for their children, the federal government will contribute $1,000 for babies born between Jan. 1, 2024, and Dec. 31, 2028.

Families could add $5,000 a year, with the account holders unable to take distributions before age 18. Then, they could access up to 50% of the money to pay for higher education, training and first-time home purchases. At age 30, account holders have access to the full balance of the account for any purpose.

‘Beautiful’ bill faces narrow path

Democrats stand opposed to the package, with its sweeping tax breaks and cuts to Medicaid, food stamps and green energy programs, making GOP unity crucial for Trump.

A small number of House Republicans have declined to back the bill while calling for even deeper cuts to Medicaid and a higher limit for deductions tied to state and local taxes.

Cuts to various federal programs are necessary, some opposing GOP House members say, to offset the impact of the multitrillion-dollar package on the country’s $36 trillion debt. Discussion of further cutting back social safety nets has drawn fierce opposition from Democrats.

“They literally are trying to take health care away from millions of Americans at this very moment in the dead of night,” said House Democratic Leader Hakeem Jeffries of New York.

During a more than hourlong session Tuesday, Trump warned Republicans not to touch Medicaid with cuts, and he told New York lawmakers to end their fight for a bigger local tax deduction, reversing his own campaign promise.

The president, heading into the meeting, called himself a “cheerleader” for the Republican Party and praised Speaker Mike Johnson. But he also criticized at least one of the GOP holdouts as a “grandstander” and warned that anyone who doesn’t support the bill would be a “fool.”

Yet it was not at all clear that Trump, who was brought in to seal the deal, changed minds.

“We’re still a long ways away,” said Rep. Andy Harris, R-Md., chair of the House Freedom Caucus.

The Associated Press contributed to this report.

Share this @internewscast.com
You May Also Like

Leaders in Blue States Consider New Legislation to Address Financial Impact of Trump’s Major Bill

State legislators are rushing to address the anticipated financial impact of President…

SPD Detains Suspect Linked to May Assault

The Savannah Police Department (SPD) detained an individual on Wednesday regarding a…

Boy, 6, Survives Close Call with Drowning, Reports Seeing Angels

AVOYELLES PARISH, La. (KLFY) — Independence Day was filled with family joy…

UPDATE: I-74E Reopens in DeWitt County After Three-Vehicle Accident

Update at 8 p.m. FARMER CITY, Ill. (WCIA) — Interstate 74 Eastbound…

Aiken Resident Charged with Child Exploitation

AIKEN, S.C. () – A man has been taken into custody by…

Publix Announces Locations for New Store Openings

(NEXSTAR) – There’s good news for fans of the beloved grocery store…

Flooded Roads and Power Outages Hit Coastal Empire and Lowcountry

SAVANNAH, Ga. () — Officials warned residents of several roads across Chatham…

Michelle Obama Expresses Feeling ‘Absolutely Free’

(The Hill) – Michelle Obama, the former first lady, who has recently…

The International Criminal Court suspects ongoing war crimes and crimes against humanity in Sudan’s Darfur region

TANZANIA – According to the International Criminal Court, war crimes and crimes…

Denver Bar Introduces the $2,500 “Gilded Martini” Cocktail

DENVER (KDVR) Tucked away in an alley, inside a hotel that was…

U.N. Investigator Criticizing Israel’s Gaza Actions Expresses Shock Over U.S. Sanctions

SARAJEVO – An independent U.N. investigator critical of Israel’s actions in Gaza…

Execution Date Scheduled for Utah Death Row Inmate with Dementia

SALT LAKE CITY (KTVX) – A Utah judge on Wednesday set an…