Democrats and Republicans agree on little these days, and that couldn’t be more true when it comes to pro-family economic policy. While a number of Republicans have proposed expanding the child tax credit or considered other ways to direct cash assistance to families, Democrats prefer a big government approach.
In April, the White House released what it called the “American Families Plan,” a $1.8 trillion spending package that promises a bunch of giveaways to left-wing interest groups, most notably to woke activists in the education establishment. One of the plan’s most controversial proposals calls for $200 billion for two years of “free” universal preschool, ensuring that kids are properly taught the sacraments of the new state religion — anti-Americanism, gender ideology, and critical race theory — before they are given any other ideas by their parents at home.
Indeed, Biden’s plan amounts to a big government takeover of the family, and Republicans are absolutely right to oppose it. But there are aspects of the plan that will prove popular with many Americans. For example, the plan would permanently convert the child tax credit into Biden’s “child allowance,” which passed earlier this year as part of the COVID-19 relief bill. Instead of expiring in the middle of 2022, parents would continue to enjoy monthly payments in the amount of $300 per kid under the age of six and $250 a month per kid between ages six and seventeen.
If Republicans are to oppose the whole enchilada, they’re going to need a counter-proposal that is both politically appealing and helps families. Some great options include:
Sen. Josh Hawley’s (R-Mo.) Parent Tax Credit, which would provide $12,000 to married parents and $6,000 to unmarried parents with at least one child under the age of 13. This would be in addition to the existing child tax credit.
Sen. Mitt Romney’s (R-Utah) child allowance, which on paper looks very similar to the Biden child allowance but is paid for by cutting wasteful welfare programs and tax subsidies for wealthy individuals in high-tax blue states.
Sen. Marco Rubio (R-Fla.) and Sen. Mike Lee’s (R-Utah) child tax credit expansion, an ambitious proposal which previously received the support of 49 Senate Republicans as an amendment to the COVID-19 relief bill.
But one proposal stands out as fiscally conservative, easy to accomplish politically, and extremely helpful to families: the Advancing Support for Working Families Act. The bipartisan bill, introduced by Sens. Bill Cassidy (R-La.) and Kyrsten Sinema (D-Ariz.), would allow parents to borrow against their own child tax credit and receive a $5,000 “baby bonus” upon the birth or adoption of a new child. Then, the parents would pay back the money over ten years with a reduced annual benefit of $500 less.
The beauty of this plan would cost the taxpayer virtually nothing while being extremely beneficial to families, providing them with access to cash at a time when they need it the most. Republicans can comfortably get on board knowing that they aren’t creating any sort of new government program or benefit, but simply making an existing benefit more useful to parents by allowing them maximum flexibility — all while protecting the taxpayer. Parents would be free to take advantage of the “baby bonus” as they choose, with the money being entirely theirs to direct according to their immediate needs.
Throwing money at the problem isn’t going to solve our family crisis overnight. Conservatives understand this intuitively. But why not make use of the resources we already have to give new parents some peace of mind — especially when they are already overtaxed and facing uncertain economic headwinds? Republicans should strongly consider supporting the bipartisan Advancing Support for Working Families Act as a way good government, not big government, can help.
Jon Schweppe is the director of policy and government affairs at American Principles Project. Follow him on Twitter @JonSchweppe.