“Bringing home a baby is the most magical moment of a parent’s life, but it is also the most expensive. Parents with toddlers today are working harder than ever, but still find it impossible to keep up with the out-of-control costs of housing, child care, groceries, and so much more,” McDonald Rivet said. “We need to cut their taxes now. Our bill puts thousands of hard-earned dollars back in their pockets, helping parents keep up with their bills while raising their families.”<\/p>\n
The EITC is available to low- to moderate-income workers and families. In the 2024 tax year, the average EITC amount paid to individuals and families in the U.S. was $2,894, according to the Internal Revenue Service<\/a>.<\/p>\n Congress has in the past enhanced tax credits. In 2021, the American Rescue Plan expanded the child tax credit<\/a> from $2,000 to $3,000, or $3,600 per child. The boost cut child poverty<\/a> nearly in half, but was allowed to lapse by Congress and never renewed<\/a>, despite multiple attempts.<\/p>\n The House is Republican-controlled, so McDonald Rivet’s bill has little chance of advancing. But bills like this provide the groundwork for Democratic messaging in an election year.<\/p>\n The new bill has support from groups such as moderate think tank Third Way and progressive coalition Americans for Tax Fairness.<\/p>\n “The Working Parents Tax Relief Act of 2026 would deliver real relief for working- and middle-class parents,” said Zach Moller, senior director of Third Way’s economic program.<\/p>\n