Sens. Marco Rubio and Mike Lee are introducing an amendment to the Senate GOP’s tax plan that would provide a more generous child tax credit and pay for the changes by increasing the planned corporate tax rate by two points.
The amendment would make the proposed $2,000 credit refundable against payroll taxes, which would increase its availability to lower-income people who might not pay federal income taxes.
“We have a chance to do better by working families in this tax bill,” the senators said in a statement. “This amendment would level the playing field for families, while still kick-starting national investment and growth.”
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The amendment would also index the credit to inflation, among other changes. It would increase the corporate tax rate to 22 percent, up from a planned 20 percent, to pay for it all.
The Senate plan currently calls for an increase in the credit to $2,000 per qualifying child, up from $1,000.
Other senators have also spoken about the need to expand the credit, but many are likely to oppose a corporate tax rate any higher than the planned 20 percent, down from 35 percent, to pay for new benefits.
The White House has also said President Trump will not accept a corporate rate higher than 20 percent in a tax overhaul bill.
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