Congress’ Tax Extender Deal Makes EITC and CTC Improvements Permanent
December 16, 2015Print
By Kate Skochdopole
After weeks of negotiation, Congress today announced it has reached a bipartisan deal on tax extenders. The compromise bill makes permanent key provisions of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) that were scheduled to expire in 2017, averting a potential tax hike on millions of working families.
When the deal is finalized, 50 million Americans, including 25 million children, no longer will be in danger of losing part or all of their credits and 16 million of these filers currently living near or below the poverty line will be spared a devastating blow to their incomes. The Center on Budget and Policy Priorities also estimates that renewing these provisions makes the EITC 20 percent more effective at reducing poverty.
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