Congress announces major tax deal to expand child tax credit and revive breaks for businesses
NBCJAN 2024
US Lawmakers Propose $78B Child, Business Tax Credit Bill
The Spin
Establishment-critical narrative
All too often, American politicians have introduced bills to create or expand the so-called "refundable tax credits," which they have falsely marketed as tax cuts despite effectively representing new direct expenditure because checks exceed taxes paid. As the national debt has already toppled $34B, the US should rein in public spending to reduce the burden on taxpayers instead of expanding federal benefits.
Pro-establishment narrative
Though the US has been in a precarious fiscal situation, adding up to $100B to the budget deficit to reduce poverty and boost the economy makes perfect economic sense. Child poverty costs the US economy over $1T, as it slashes productivity and increases both health care costs and crime, while the gross domestic product could fall by up to $325B per year without the proposed business tax deductions.