Cape News

Safeguards introduced to prevent Child Tax Credit (CTC) benefits from being accessed by illegal immigrants are at risk of disappearing if Congress does not act. These measures, implemented as part of the 2017 Trump tax cuts, require a Social Security Number (SSN) for eligibility. Since their introduction, the improper payment rate for the CTC has been reduced by half.

If Congress fails to extend these tax cuts, taxes will increase for American workers, families, farmers, and small businesses. Additionally, 40 million families could see their CTC reduced from $2,000 to $1,000, and safeguards against fraud and misuse could be eliminated.

Jason Smith (MO-08), Chairman of the Ways and Means Committee, emphasized the importance of maintaining these protections: “The Child Tax Credit is a lifeline for millions of hardworking American families, but its integrity is under threat. Thanks to the 2017 Trump tax cuts, Republicans put in place a critical safeguard requiring a Social Security Number for eligibility... With the Biden Administration having allowed millions of illegal immigrants to enter the country over the past four years, weakening this protection should be a nonstarter."

The 2017 Trump tax cuts doubled the CTC per child from $1,000 to $2,000 and introduced an SSN requirement. If not extended by Congress next year within its 149 legislative days available before expiration, various financial impacts are anticipated:

- A family earning $80,610 could face a $1,695 tax increase.

- 40 million families might experience a reduction in their CTC.

- The average taxpayer could encounter a 22% tax hike.

- Small businesses may face increased rates due to expiring deductions.

- Family-owned farms would have reduced Death Tax Exemptions.

The urgency is underscored by potential widespread economic effects if these policies expire without Congressional action.