Letter to the editor: Understanding Build Back Better Act

Our country will fundamentally change if the U.S. Senate passes the Build Back Better Act. You need to understand how it will change.

The child tax credit will continue for one additional year, at which time the tax credit for a 0- to 6-year-old child will return from the current $3,600/child to a $2,600/child credit. Under this act, this credit is fully refundable — which means even those who paid no taxes will receive $3,600/child for the first year and $2,600/child 0-6 years old in subsequent years (reduces to $2,000/child for 7-17 years old).

The flaunted child care will be available to families based on the state medium income (SMI) and will be phased in at 100%, 125% and 150% SMI over three years with family copayments varying by income. Note that the SMI for D.C. is $85,000, California is $75,000, New York $67,000 and West Virginia is $44,000. Above these limits, child care is not subsidized. In year three, 50% of the administrative costs will be borne by participating states.

Taxfoundation.org projects long-run GDP reduced by 0.4% and long-run American incomes reduced by 0.4%, and reduced capital stocks by 0.8% and wages by 0.3%. Additional because of the higher GILTI (global intangible low-taxed income) taxes, U.S. multinational companies are incentivized to sell foreign assets to foreign competitors not subject to GILTI.

A number of these items you may support, a number you may not support. It is essential to understand what it means to you before our senators vote on it!

Chris Baldy

Murrysville