Sumary of EXPLAINER-Main battles ahead for U.S. Democrats’ $3.5 trillion social spending bill:
- By Jarrett Renshaw, David Lawder6 Min Read(Reuters) – Democrats are crafting a massive spending package as big as $3.5 trillion that would transform the U.S. economy by investing in free community college, childcare and green energy, funded by tax hikes on the wealthy and larger companies.
- Facing unified Republican opposition, Democrats will need to pass the bill on strict party lines using a legislative tool called budget reconciliation.
- In committee debate, Republicans hammered these credits as giveaways to wealthy Tesla car buyers and corporations like Amazon.
- Democrats’ plans to extend a larger Child Tax Credit here through 2025, providing families monthly payments of up to $300 per child, would cost a hefty $556 billion, according to JCT.
- Tax credits for child care workers and expenses would cost $35 billion and an expanded Earned Income Tax Credit for low-income workers would cost $135 billion over a decade.
- Manchin has voiced concern here that the Child Tax Credit contains no work requirements for parents nor education requirements.
- A Reuters analysis here has found that the expanded credit has disproportionately benefited Republican states.