Agudath Israel Applauds Inauguration of President Biden’s Child Tax Credit as Bringing Major Relief to All Families

As President Biden has announced, Americans will begin receiving advanced Child Tax Credit payments, as provided for in the American Rescue Plan Act of 2021. The one-year increased benefit is designed to help parents support their families and is seen as a viable method to lessen the enormous stress on families – particularly in light of the coronavirus pandemic — and to reduce the number of children living in poverty.

Agudath Israel of America has, for decades, worked in Washington on expanding and enhancing the child tax credit, as it has been of value to members of the Orthodox Jewish community. Large families are quite common among Orthodox Jews and this tax program has proven beneficial to that population.

“Over the years, progress on the child tax credit has come, albeit slowly and incrementally,” noted Agudath Israel’s Rabbi Abba Cohen, Vice President for Government Affairs and Washington Director. “This year the credit was a priority for us and we worked hard to make this valuable tax benefit more applicable and accessible to our families. We especially thank Majority Leader Charles Schumer (D-NY) and Senator Ben Cardin (D-NY) for their leadership in making this happen.

Previous versions were helpful but often did not live up to their promise. For example, one of the hurdles has been limitations on the number of eligible children, as the program and often subsequent proposals would cap the number of children who could receive the credit. This would be of limited relief to large needy Orthodox Jewish families.

The 2021 Child Tax Credit goes far in addressing these problems. Under the program, the child tax credit has been increased from $2,000 to $3,000 per child for children over the age of six, and from $2,000 to $3,600 for children under the age of six. Moreover, the legislation raised the age limit from 16 to 17. Families making up to $150,000 (couple) or $112,500 (single parent) will receive the full credit. Eligible households will receive up to $300 per child every month. Under the program , the credit will be adjusted for families in higher income brackets.

There is no cap on the number of children eligible to receive the credit.

For additional information, see
https://www.whitehouse.gov/child-tax-credit/ and
https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021.

On another front, the American Rescue plan included $15 billion in Child Care and Development Block Grant (CCDBG) funds, which subsidizes child care for low-income families. Almost thirty years ago, Agudath Israel, working with the late Senator Edward Kennedy (D-MA), played a central role in ensuring that the program would allow parents to use the funding to send their children to the child care provider of their choice – including religious providers. For decades, Agudath Israel has continued to make sure that CCDBG has been a major source of relief to working parents opting for faith-based child care.

“The Child Care Tax Credit, and other forms of child relief, are an enormous help to American families and the financial challenges parents face in raising children in today’s world,” concluded Rabbi Cohen. “Ultimately, it will help children grow up as happier, healthier and more productive young people better equipped to face the next stages of life. We strongly support the President’s call to extend the credit permanently.”

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7 COMMENTS

  1. Democrats offer financial relief. This isn’t new.

    Republicans offer less taxes (usually).

    Which are we? By the Agudah “applauding” the Biden administration, aren’t the Jewish people being represented as supporters of a leftist, communist leaning administration?

    • Republicans rarely actually offer those tax decreases for the majority of people. And the majority usually suffer from them.
      I know it sounds crazy, but when large corporations are taxed at 60%, they have a greater incentive to hire people and pay them a living wage. That is much more beneficial to all of us than the rich getting richer. When they are richer, they do stock buybacks, and nobody else gains.

  2. What about help and some acknowledgement for the families where both parents work hard and tirelessly and they actually make an income but bc they aren’t “lower class” they get no benefits or programs? A family of 6 making $150,000 isn’t exactly wealthy and can also benefit from some help and benefits. Many of these programs help families where the Father is learning and mother is working and the programs make it worthwhile that he shouldn’t go to work. What about those who actually do take responsibility and work??

    • or a family of 10 making $175 – lose every benefit – paying full tuition/camps… full food bills… no stimulus… no salary increase as covid (so less $ came in) per boss… watching e.o rake it in and take vacations and get unemployment plus… WOW – real eye opener… but still would rather it this way than feeling like a shnorer.

    • We send you our thoughts and prayers.
      Whining never helps anybody.
      Facts don’t care about your feelings.

      And every other disgusting right wing cliche.

      Your chutzpa of comparing the two options of ‘father learning’ or ‘father taking responsibility’ is typical of the holier than thou anti-Torah elements

  3. The one thing people need to realize is that this is an advance tax CREDIT. It is not “free money.” Yes, the credit has increased. Yes, many people often receive refunds. However, if someone is banking on these credits to lower the overall tax they owe at filing, they may be left with a large tax bill because (half of) the credit was already paid out. This is probably most true for middle income earners, especially if they experienced an increase in income for 2021. Just be forewarned so this help does not end up hurting you. If you feel you may be in this bracket, it is probably worth contacting your accountant to do some brief tax planning. If you are somewhat knowledgeable and familiar with your own taxes you can take a look at your prior year returns and see how much the child tax credit reduced your overall tax liability. The ability to opt out of the monthly payments is available. Just google how to do it. It is quite simple.
    Hatzlacha to all.

  4. I was brought up that we are not Republicans nor Democrats. We are yidden and we must do everything we can to support other yidden and a frum lifestyle. The frum community gets about a billion dollars from this bill, more than from any prior fedeal bill, and it raises the federal budget by little more than $100 billion (a small percentage of the total budget. It is our responsibility to ensure that it continues.

Comments are closed.