Child tax credit tussle reflects debate over work incentives

WASHINGTON (AP) — To supporters of the child tax credit, there has always been an "aha moment" — the recognition that as little as a few hundred dollars a month could be life-changing.

For Colorado Sen. Michael Bennet, it was several years ago when he was working as Denver's school superintendent. One high schooler kept falling asleep in morning classes. When Bennet asked why he was so exhausted, the student said he worked the midnight shift at McDonald's so that his family had enough money.

For Connecticut Rep. Rosa DeLauro, it was the childhood memory of her parents being evicted and finding their furniture on the street.

Bennet and DeLauro are among the Democratic lawmakers who have pushed to make permanent an expanded child tax credit, which President Joe Biden's coronavirus relief package transformed into a monthly payment that would be available to almost any child. But Biden could not convince even enough of his fellow Democrats that they should extend these payments through 2025, and in negotiations for his broader package of economic and social programs he appears to have settled for a one-year extension that runs through next year.

Despite the concession, the president is still fighting for a legacy-making policy that could become the equivalent of Social Security for children. Biden dubbed the start of payments in July as “historic,” saying that the reduction to child poverty would be transformative and that he intended to make the credit permanent.

The steady evolution of the child tax credit reflects a fundamental split on how lawmakers think about human nature. Do payments from the government make people lazier or give them the resources to become more responsible? Established with bipartisan support in 1997, the credit has changed in ways that...