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As Democratic lawmakers on Capitol Hill work to bring their new reconciliation bill across the finish line, a proposal to keep the expanded child tax credit could be changed.

A more generous child tax credit was authorized earlier this year by President Joe Biden and Congress to help give families additional financial relief in the wake of the Covid-19 pandemic.

It has provided millions of families with direct monthly payments of up to $300 per child that started in July.

But the more generous child tax credit representing total sums of up to $3,600 per child is only in place for this year.

House Democrats unveiled their proposal last week to keep the expanded credit in place through 2025.

More from Personal Finance:House Democrats' tax plan would increase marriage penalty for wealthy couplesWhat the proposed paid family leave policy in the U.S. could look like House Democrats propose extending expanded child tax credit to 2025

But in a recent interview, Sen. Joe Manchin, D-W.Va., said he would prefer the terms of the credit include some kind of work requirement in order for parents to receive it.

"Don't you think, if we're going to help the children, that the people should make some effort?" he said during a Sunday interview on CNN.

Democrats are looking to move the changes through under a process known as reconciliation, which requires a simple majority vote in the Senate.

"Democrats need 100 percent support in their ranks to pass this through reconciliation, so if Senator Manchin feels it's a priority, it will be a priority," said Shai Akabas, director of economic policy at the Bipartisan Policy Center.

The expanded child tax credit includes up to $3,600 per child under age 6 and $3,000 per child ages 6 through 17. Previously, the credit was $2,000 per child under 17, and will revert back to that if the temporary changes put in place for 2021 are not extended.

With the expanded child tax credit, lawmakers also created monthly direct payments for the first time. Starting in July, families received payments of up to $300 per month for children under 6 and $250 per month for those ages 6 to 17.

Those monthly payments are slated to continue through December. Families can claim the remaining money when they file their tax returns next year.

The more generous credit applies to families under certain income thresholds $150,000 for married couples who file jointly and $112,500 for unmarried parents.

Also, parents do not need a certain level of income before they can qualify. Previously, the credit started phasing in at $2,500 in earned income. Now, parents can qualify even if they have $0 in income.

In addition, parents can now receive the full sums as refunds, versus a limit of $1,400 previously.

Senate Majority Leader Chuck Schumer (D-NY) speaks during a news conference on families helped by the Child Tax Credit at the U.S. Capitol July 20, 2021 in Washington, DC.

Win McNamee | Getty Images

The expanded child tax credit has been met with enthusiasm by advocates who say it has dramatically reduced child poverty.

One thing could get in the way of approving the proposed extension is costs.

Manchin has also said that he will not support the $3.5 trillion overall price tag.

Democrats could compromise to bring the cost of the expanded child tax credit lower, Akabas said. That could include making part of the credit fully refundable in the form of an allowance that is paid monthly throughout the year, and another part that is closer to the previous child tax credit structure that starts phasing in at a low level of earnings, he said.

The Bipartisan Policy Center has drafted its own proposal for how a new permanent expansion of the child tax credit could work in coordination with changes to the earned income tax credit, which also serves as an anti-poverty program.

Ultimately, there is a balance between providing universal support to families and encouraging work force participation for those who are struggling to make ends meet, Akabas said.

"That is how ultimately they are going to be most economically successful," Akabas said of work force participation.

As Democrats negotiate over a long list of priorities, it is too soon to tell exactly how the expanded child tax credit could end up. Some Democrats are opposed to tying it to earnings.

"That will be a debate they will have in the coming weeks," Akabas said.

Read more here:
Democrats look to extend the expanded monthly child tax credit payments through 2025. The terms could still be up for negotiation - CNBC

Virginia Republican gubernatorial nominee Glenn Youngkin broke with former President TrumpDonald TrumpOhio Republican who voted to impeach Trump says he won't seek reelection Youngkin breaks with Trump on whether Democrats will cheat in the Virginia governor's race Trump endorses challenger in Michigan AG race MORE on Thursday on whether he believes Democrats will cheat in the upcoming election.

"No, I think we're going to have a clean, fair election and I fully expect to win," Youngkin told moderator Susan Page at the first Virginiageneral election debate of the cycle.

Additionally, Youngkin said he did not believe there had been significant fraud in Virginia's elections.

The question to Youngkin was a reference to comments Trump, who has endorsed Youngkin, made on "The John Fredericks Show" earlier this month.

You know how they cheat in elections. The Virginia governors election you better watch it, Trump told the conservative Virginia-based talk show host.

Yougkin's Democratic opponent, former Gov. Terry McAuliffe (D), has repeatedly sought to tie Youngkin to Trump, citing Trump's endorsement and his unfounded claims that the 2020 presidential election was rigged.

McAuliffe has repeatedly pointed to Youngkin'sElection Integrity Task Force," which he launched in February prior to winning the Republican nomination for governor, as evidence Youngkin is aligned with Trump on the issue. Youngkin said the effort is designed to establish legal voting standards in election processes.

When asked why he frequently inserts Trump into his campaign rhetoric and attacks against Youngkin, McAuliffe said it was Youngkin who inserted Trump into the campaign.

"We know the damage that Donald Trump has done to this country," McAuliffe said.

Youngkin fired back at McAuliffe, citing comments the Democrat made in the early 2000s aboutthe highly contested 2000 presidential election in which he said Democrats won the election.

Both candidates said they would accept the other as the legitimately elected governor if the other won the general election.

The forum marked the first time the candidates came face-to-face on the debate stage during the general election. McAuliffe and Youngkin sparred on a number of topics including abortion, the economy and coronavirus restrictions. The debate also comes as the race enters its final stretch with early voting kicking off in Virginia on Friday.

The next debate is slated to take place Sept. 28 at George Mason University.

View post:
Youngkin breaks with Trump on whether Democrats will cheat in the Virginia governor's race | TheHill - The Hill

Tensions are flaring among congressional Democrats amid growing red lines over the partys $3.5 trillion spending plan.

The frustrations among Democrats, which have simmered for weeks, are boiling over as lawmakers return to Washington and immediately plunge into a debate over tax hikes to pay for the plan. The House Ways and Means Committee unveiled its tax proposals on Monday.

Democrats are pushing up against a self-imposed deadline to finish drafting the $3.5 trillion spending bill by Wednesday and have it on the House floor by the end of the month two timelines that have sparked pushback from moderates.

I think it would be very hard to do, Sen. Joe ManchinJoe ManchinBriahna Joy Gray: Push toward major social spending amid pandemic was 'short-lived' Overnight Energy & Environment Presented by Climate Power Emissions heading toward pre-pandemic levels Biden discusses agenda with Schumer, Pelosi ahead of pivotal week MORE (D-W.Va.) told reporters about the Wednesday deadline, adding that theres an awful lot to be done.

Manchin and other centrists are also likely to be uneasy over a number of the tax provisions, which may not go far enough from the point of view of liberals in the House and Senate.

Veteran Democrats say the battles are to be expected, while acknowledging the differences are real and difficult to move past.

We have work to do. ... Its our chance to square off, see one another eyeball to eyeball and work out our differences, but there are clearly differences, said Sen. Dick DurbinDick DurbinManchin keeps Washington guessing on what he wants Democrats hope Biden can flip Manchin and Sinema US gymnasts offer scathing assessment of FBI MORE (Ill.), the No. 2 Senate Democrat.

The fights increasingly are taking place in public, with various members sparring in television interviews and on social media.

Manchin used a pair of TV interviews to reiterate that he cant support $3.5 trillion and to also respond to criticism from Rep. Alexandria Ocasio-CortezAlexandria Ocasio-CortezConservative group files ethics complaint over Ocasio-Cortez appearance at Met Gala If .5 trillion 'infrastructure' bill fails, it's bye-bye for an increasingly unpopular Biden The Hill's Morning Report - Presented by National Industries for the Blind - Schumer: Dem unity will happen eventually; Newsom prevails MORE (D-N.Y.), who he referred to as a young lady who he had only briefly met.

The remarks sparked immediate progressive pushback, with Senate Budget Committee Chairman Bernie SandersBernie SandersBriahna Joy Gray: Push toward major social spending amid pandemic was 'short-lived' Sanders 'disappointed' in House panel's vote on drug prices Manchin keeps Washington guessing on what he wants MORE (I-Vt.) saying Manchins call for a much lower price than $3.5 trillion is not acceptable.

Ocasio-Cortez seized on Manchins description of her, tweeting that: In Washington, I usually know my questions of power are getting somewhere when the powerful stop referring to me as Congresswoman and start referring to me as young lady instead.

The war of words between Manchin and the two progressives is in many ways a proxy fight for the larger divisions that are building among moderates and progressives over the partys two-part infrastructure strategy.

Moderates are eager to get the Senate-passed $1 trillion infrastructure bill to President BidenJoe BidenTrump endorses challenger in Michigan AG race On The Money: Democrats get to the hard part Health Care GOP attorneys general warn of legal battle over Biden's vaccine mandate MOREs desk, while progressives want to use the larger bill to make good on a handful of promises including combating climate change, expanding Medicare and immigration reform before taking final action on the narrower bill.

I think a lot of things are going to have to be worked out. A lot of arguments are going to be made. Its not just Joe Manchin or Sen. Sinema. Its other people, Sanders said Monday.

Biden and Democratic leaders need to get past those differences with little room for error. Speaker Nancy PelosiNancy PelosiOn The Money: Democrats get to the hard part Biden discusses agenda with Schumer, Pelosi ahead of pivotal week Stefanik in ad says Democrats want 'permanent election insurrection' MORE (D-Calif.) can lose just three of her members while in a 50-50 Senate, Majority Leader Charles SchumerChuck SchumerBiden discusses agenda with Schumer, Pelosi ahead of pivotal week CEOs urge Congress to raise debt limit or risk 'avoidable crisis' If .5 trillion 'infrastructure' bill fails, it's bye-bye for an increasingly unpopular Biden MORE (D-N.Y.) can lose none.

Theres an effort underway to get all 50 senators on a bill, Durbin said. Its going to take some personal negotiation, person to person, to see whats acceptable

Progressives are drawing a hard line on keeping the spending bill at $3.5 trillion. Both House and Senate Democrats passed a budget resolution last month that allowed Democrats to pass a bill of up to $3.5 trillion without GOP support.

We can either spend $3.5 trillion to address the climate now, or we can spend much more than that later when the crisis has escalated even further and taken even more lives, the Congressional Progressive Caucus warned Monday.

But moderates in both chambers have signaled unease over the spending, and Manchin and Sen. Kyrsten SinemaKyrsten SinemaOvernight Energy & Environment Presented by Climate Power Emissions heading toward pre-pandemic levels Biden discusses agenda with Schumer, Pelosi ahead of pivotal week Biden goes after top 1 percent in defending tax hikes MORE (D-Ariz.) have specifically said they cant support $3.5 trillion.

Democratic leaders arent predicting where the final bill will ultimately end up.

Even as big pieces of the Democratic plan, including how to pay for it, remain in flux, Democratic-led House committees are days into voting on pieces of the bill.

But the pieces being voted on by the House are likely to undergo significant changes, as they try to figure out what provisions can win enough support to get through the chamber.

Sen. Elizabeth WarrenElizabeth WarrenFederal Reserve officials' stock trading sparks ethics review Manchin keeps Washington guessing on what he wants Warren, Daines introduce bill honoring 13 killed in Kabul attack MORE (D-Mass.) praised the Houses child care language but said that she would like to see us do more to make billionaires, giant corporations and tax cheats pick up the ticket for this package.

Durbin noted there has been some progress, with four to five Senate committees working out deals with their House counterparts ahead of Wednesdays deadline. Yet roughly a dozen are involved in drafting the bill, meaning more furious work will be taking place on both sides of the Capitol in the next 48 hours.

For example, House Democrats are proposing a corporate tax rate of roughly 26.5 percent, though Manchin and Sen. Mark WarnerMark Robert WarnerAdvocates call on top Democrats for 0B in housing investments Democrats draw red lines in spending fight Manchin puts foot down on key climate provision in spending bill MORE (D-Va.) have indicated they dont want it to go above 25 percent. Asked about the Houses higher rate, Warner on Monday said he wasnt an automatic no but that it depends on how the pieces all fit together.

A group of House moderates on Monday also took issue with energy language, saying that policies from their colleagues are targeting the U.S. oil, natural gas, and refining industries.

Sen. Sheldon WhitehouseSheldon WhitehouseDemocrats draw red lines in spending fight What Republicans should demand in exchange for raising the debt ceiling Climate hawks pressure Biden to replace Fed chair MORE (D-R.I.) called climate provisions a pretty red line.

At the end of the day were going to have a deal and its going to be good enough on climate or it wont go, he said.

And House and Senate Democrats bristled over the House Ways and Means Committee not including changes to the Trump-era state and local tax (SALT) deduction cap, which has hit taxpayers in certain parts of New York, New Jersey and California particularly hard.

We are committed to enacting a law that will include meaningful SALT relief that is so essential to our middle-class communities, and we are working daily toward that goal, Reps. Bill PascrellWilliam (Bill) James PascrellDemocrats brace for toughest stretch yet with Biden agenda LIVE COVERAGE: Tax hikes take center stage in Ways and Means markup Democrats draw red lines in spending fight MORE (D-N.J.) and Thomas Suozzi (D-N.Y.) said in a joint statement Monday.

Sen. Bob MenendezRobert (Bob) MenendezOvernight Defense & National Security Blinken heads to the hot seat Blinken to testify before Senate panel next week on Afghanistan Overnight Health Care FDA vaccine scientists depart amid booster drama MORE (D-N.J.) added that he was extremely disappointed it was left out of the House bill.

I expect the final House bill will include a full repeal, he added, otherwise itll be hard to support it.

Link:
Democrats draw red lines in spending fight | TheHill - The Hill

Happy Monday and welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. Subscribe here: thehill.com/newsletter-signup.

Todays Big Deal: House Democrats are now hitting the most challenging stretch of their infrastructure push. Well also look at an ethics review at the Federal Reserve and how much of President BidenJoe BidenTrump endorses challenger in Michigan AG race On The Money: Democrats get to the hard part Health Care GOP attorneys general warn of legal battle over Biden's vaccine mandate MOREs relief bill actually made it to American families.

But first, a wholesome Giannis moment.

For The Hill, Im Sylvan Lane. Write me at slane@thehill.com or @SylvanLane. You can reach my colleagues on the Finance team Naomi Jagoda at njagoda@thehill.com or @NJagoda and Aris Folley at afolley@thehill.com or @ArisFolley.

Lets get to it.

Democrats brace for toughest stretch yet with Biden agenda

House Democrats this week wrapped up the bulk of committee work on a $3.5 trillion package of social benefits and climate programs a massive undertaking that advances what would be a legacy-defining domestic agenda for President Biden.

Now the harder part begins.

While 13 separate committees succeeded in drafting, massaging and ultimately approving the portions of the package under their jurisdiction, the process featured plenty of infighting between disparate factions over various provisions differences that have created headaches for Democratic leaders and will need resolving before the legislation hits the floor.

The combination is raising new questions about whether House leaders have the votes to pass the package on the floor with a minuscule majority. And thats all before the looming fight in the evenly split Senate, where Democrats can afford zero defections.

The Hills Mike Lillis and Scott Wong break it down here.

PRESENTED BY WELLS FARGO

D.C. small businesses receive $10M from Wells Fargo

Eddie Lofton of JC Lofton Tailors on U Street is rebuilding his business with a grant from nonprofit LISC D.C.

Wells Fargos Open for Business Fund, a small business recovery effort has donated $10M to nonprofits that support District businesses to date.

LEADING THE DAY

Over $450B in COVID-19 relief funds delivered to families: Treasury

The Treasury Department said in a new report on Thursday that it has delivered over $450 billion to families directly under the $1.9 trillion coronavirus rescue package President Biden signed earlier this year.

Overall, the agency said it has distributed roughly $700 billion out of the $1 trillion it was tasked with managing in programs and tax credits under the presidents American Rescue Plan that was approved by Congress shortly before spring. Aris has more details here.

TAKING STOCK

Federal Reserve officials' stock trading sparks ethics review

Federal Reserve Chairman Jerome Powell has directed officials at the central bank to take a comprehensive look into the ethics rules surrounding permissible financial holdings and activities by senior staff.

A spokesperson confirmed to The Hill on Thursday that Powell issued the directive last week after reports emerged of stock trades made by leaders at the Fed's banks in Dallas and Boston last year.

While both bank presidents said they complied with ethics rules, they later said they would divest their assets to avoid the appearance of any conflict of interest. Heres the full story from Aris.

BIDEN BASHES BIG BIZ

Biden goes after top 1 percent in defending tax hikes

President Biden on Thursday went after big corporations and wealthy Americans while promoting his economic agenda that congressional Democrats are working to get across the finish line.

Let me ask you this, where is it written in that all the tax breaks in the American tax code go to corporations and the very top? I think its enough, Im tired of it, he said in remarks at the White House on the economy.

The president reiterated his calls for big corporations and the wealthy to pay their fair share in taxes, saying it's long overdue.

Im not out to punish anyone, Im a capitalist. If you can make a million or a billion dollars, thats great. God bless you. All Im asking is you pay your fair share, pay your fair share, just like middle class folks do, he said.

The Hills Alex Gangitano takes us there.

A MESSAGE FROM WELLS FARGO

D.C. diner rebuilds with help from nonprofit & Wells Fargo

Flip-It LJ Diner owner Sandra Foote didnt think her Columbia Heights restaurant could survive COVID-19.

Wells Fargos Open for Business Fundprovided a grant to the nonprofit District Bridges, which then helped Sandra cover bills. .

Good to Know

Retail sales rose slightly in August despite soaring cases of COVID-19 and supply chain snags, reversing from a decline in July and beating expectations of another decrease.

Heres what else have our eye on:

Thats it for today. Thanks for reading and check out The Hills Finance page for the latest news and coverage. Well see you tomorrow.

Read more:
On The Money: Democrats get to the hard part | TheHill - The Hill

NEWYou can now listen to Fox News articles!

In the next few weeks, Republicans have an opportunity to rebrand the Democrats as Big Government Socialists.

This is the kind of opportunity which may come once in a lifetime.

Every Democratic senator and representative has already voted for the outline of Vermont Independent Sen. Bernie Sanders $3.5 trillion Big Government Socialist bill. No matter what lies they tell back home about being moderates, their names are right there on pages S6237 (Aug. 10) and H4371 (Aug. 24) of the Congressional Record. When it mattered there were no moderate Democrats. The only Democrats serving in Congress were unanimously willing to vote for Big Government Socialism.

The Big Government Socialist brand will isolate the Washington Democrats from their own moderates and from the rest of the country. Faced with this clear betrayal of their values, millions of grassroots Democrats will find themselves having to organize a moderate wing of the Democratic Party (something Bill Clinton tried to do as governor of Arkansas in the 1980s).

SENATE AWAITS RULING ON DEM PLAN TO PASS IMMIGRATION IN RECONCILIATION, CIRCUMVENTING GOP

In a number of upcoming primary elections, there may be moderate Democratic candidates prepared to run against the Big Government Socialist incumbents using the $3.5 trillion bill vote as proof the incumbents need to be replaced.

The polling is clear and devastating for the Big Government Socialist Democrats. Americans in general favor Free Market Capitalism over Big Government Socialism by a huge margin (59 percent to 16 percent). Among swing voters, there is an almost 5:1 advantage for Free Market Capitalism over Big Government Socialism (82 percent to 18 percent).

Perhaps most ominous of all for the Washington Democrats, swing voters already believe by 69 percent to 31 percent that the $3.5 trillion Big Government Socialist bill proves Big Government Socialists now define the Democratic Party.

BUDGET RECONCILIATION: WHAT TO KNOW ABOUT PROCESS USED IN COVID AID FIGHT

If everyone who is opposed to the $3.5 trillion bill uses the term Big Government Socialists, within a few weeks the 50 Senate Democrats and 220 House Democrats who have already voted for the bill will be permanently defined as members of a repudiated value system.

When the detailed version of the $3.5 trillion Sanders bill makes clear its wide range of tax increases and enormous expansion of government into our personal lives, Democrats will have two choices. They could vote "no" to soften their images back home and defeat the bill. Or they could double down, vote "yes," and hope the wave of Pelosi-Schumer-Biden money will overcome the immense voter hostility to Big Government Socialism.

The real test for the next month falls on Republicans and conservatives. Can they have a disciplined focus on defining the $3.5 trillion bill as Big Government Socialism?

DEM-BACKED VOTING BILL FACES LEGAL THREAT FROM 23 STATES: UNNECESSARY BUT ALSO UNCONSTITUTIONAL

Can they communicate nationally in every state and congressional district that the Democratic incumbents have proven they are Big Government Socialists by voting for the $3.5 trillion bill in August?

When facing hostile, distracting questions from leftwing television reporters, can Republicans discipline themselves to constantly point out that the $3.5 trillion bill was written by an avowed socialist and IS Big Government Socialism?

CLICK HERE TO GET THE OPINION NEWSLETTER

When face-to-face with Democratic incumbents, can the Republicans muster the courage and discipline to stick to facts and hammer away that "on this date you voted for a $3.5 trillion Big Government Socialist Bill and that makes you a Big Government Socialist?"

Finally, can Republican Party officials, activists, and candidates focus on communicating that Democrats have become Big Government Socialists and that the old moderate Democratic Party has been replaced by a new radical party?

CLICK HERE TO GET THE FOX NEWS APP

These votes in favor of Big Government Socialism have given Republicans the opportunity of a lifetime to brand the Democratic Party so it becomes a minority for a generation or more.

The test now is on the Republican side and in the conservative movement to see if they can rise to the opportunity.

To read, hear, and watch more of Newts commentary, visit Gingrich360.com.

CLICK HERE TO READ MORE FROM NEWT GINGRICH

Excerpt from:
Newt Gingrich: The rare Republican opportunity to make Democrats own the Socialist brand - Fox News