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Speaker 1: From the opinion pages of the Wall Street Journal, this is Potomac Watch.
William McGurn: A new study says that Democratic plans to expand the child allowance could drive more than one million workers from the labor force while Terry McAuliffe is busy tying his opponent to Trump in the Virginia governor’s race in hopes of victory. Welcome to Potomac Watch from the Wall Street Journal. I’m Bill McGurn and I’m joined today by my editorial page colleagues, Kim Strassel and Kate Bachelder. Kate, let’s start with you. Walk us through what the Democrats are proposing to do with the child allowance and the tax credits and why this is significant.
Kate Bachelder: Yeah, Bill. Thanks for having me. Listen, what Democrats are trying to do here is extend through 2025 provisions that were passed earlier this year in a COVID bill. The child tax credit this year is $3600 for kiddos under six and $3000 for those that are older. It’s fully refundable now, meaning it’s paid out as cash to folks who don’t earn enough to owe any income tax. As millions of families are aware, this year it’s being paid out in monthly installments, $300 per kid. Basically what Democrats want to do is extend this through 2025. Bill, I think we should talk about this more because it is not merely inflating a tax benefit. It really takes what is currently, what has traditionally been a…