H.R.1697 - Child Tax Credit Relief for Puerto Rican Families Act (119th Congress)
Summary
H.R.1697, the Child Tax Credit Relief for Puerto Rican Families Act, aims to amend the Internal Revenue Code of 1986 to provide equitable treatment for residents of Puerto Rico concerning the refundable portion of the child tax credit. The bill seeks to include residents of Puerto Rico under Section 933 in the provisions related to the refundable child tax credit. It also modifies the calculation of the refundable portion of the credit by adjusting how Social Security taxes are considered.
Expected Effects
If enacted, this bill would increase the amount of the child tax credit that Puerto Rican families can receive as a refund. This change would align the treatment of Puerto Rican residents more closely with that of residents of the states. The modifications to the calculation of the refundable portion could further increase the credit for eligible families.
Potential Benefits
- Increased financial support for families in Puerto Rico.
- Greater equity in the tax system between residents of Puerto Rico and other US residents.
- Potential reduction in child poverty rates in Puerto Rico.
- Stimulation of the local economy in Puerto Rico through increased spending.
- Simplification of tax filing for Puerto Rican families.
Potential Disadvantages
- Potential strain on the federal budget due to increased tax credit payouts.
- Possible complexity in implementing the changes to the tax code.
- Risk of errors or fraud in claiming the credit.
- Potential for political opposition due to the focus on a specific geographic area.
- The changes to the calculation of the refundable portion could create unintended consequences.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Constitution's principle of equal protection under the law, as it seeks to provide equitable tax treatment for residents of Puerto Rico. While the Constitution does not explicitly address tax credits, the power to tax and spend for the general welfare is granted to Congress under Article I, Section 8. The bill's focus on Puerto Rico could raise questions under the equal protection component of the Fifth Amendment's Due Process Clause if it were argued that it unfairly benefits one territory over others, but the justification of addressing historical inequities and promoting the general welfare of Puerto Rican families would likely be considered a legitimate governmental interest.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).