Model Estimate T22-0194 - Repeal Child Tax Credit (CTC) Earned Income Threshold and the Refundability Limit Enacted by the 2017 Tax Act, and Increase Refundability Rate from 15 to 30 Percent, by ECI Level, 2023 t22-0194.xls
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Table shows the change in the distribution of federal taxes, by expanded cash income level in 2023, of repealing the child tax credit (CTC) earned income threshold of $2,500. Under the proposal, the credit amount would be potentially refundable beginning with the first dollar of earned income. Proposal would also repeal the refundability limit enacted by the 2017 Tax Act. The limit is $1,400 indexed for inflation after 2018 and rounded down to the nearest $100. Under the proposal, the full per child amount would be potentially refundable. Proposal would also increase the refundability rate from 15 to 30 percent.

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Model Estimates Type Distribution Tables by Income Level
Primary topic Campaigns, Proposals, and Reforms
Topics Current legislative proposals Child tax credit (CTC)/Child and dependent care tax credit (CDCTC) Income tax (individual) Low-income households
Model Estimates from the same Simulation Run December 14, 2022
Model Estimate
T22-0195 - Repeal Child Tax Credit (CTC) Earned Income Threshold and the Refundability Limit Enacted by the 2017 Tax Act, and Increase Refundability Rate from 15 to 30 Percent, by ECI Level, 2023
Model Estimate
T22-0193 - Increase Child Tax Credit (CTC) Refundability Rate from 15 to 30 Percent, by ECI Percentile, 2023
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