diff --git a/src/posts/articles/family-first-act.md b/src/posts/articles/family-first-act.md index 5871acd91..dd1039dd9 100644 --- a/src/posts/articles/family-first-act.md +++ b/src/posts/articles/family-first-act.md @@ -1,6 +1,15 @@ The Family First Act (FFA) reforms several provisions beginning in 2026, following the Tax Cuts and Jobs Act’s expiration: -![](https://cdn-images-1.medium.com/max/2236/1*LhW-I6WQIaQsnqgVll5-xw.png) +| Program | Current Policy | Current Law 2026 | FFA | +|-------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------| +| **Child Tax Credit** | $2,000 per child

Phases out at 5% for income over $200,000 ($400,000 for joint filers) | $1,000 per child

Phases out at 5% for income over $75,000 ($110,000 for joint filers) | $4,200 per child under 6

$3,000 per child under 18

Phases out at 5% for income over $200,000 ($400,000 for joint filers)

Phases in for earnings up to $20,000

Capped at 6 children | +| **Pregnant Mother’s Credit** | None | None | $2,800 per newborn child

Phases in for earnings up to $10,000 | +| **Earned Income Tax Credit** | Phase-in rate:

7.65% - no children
34% - one child
40% - two children
45% - three or more

Maximum credit:
$649 - no children
$4,328 - one child
$7,152 - two children
$8,046 - three or more
Phase-out rate:
7.65% - no children
15.98% - one child
21.06% - two or more

Phase-out start:
Head of Household filers:

$10,620 - no children
$23,350 - one or more children
Joint filers:
$17,730 - no children
$30,470 - one or more | Phase-in rate:
7.65% - no children
34% - one child
40% - two children
45% - three or more

Maximum credit:
$662 - no children
$4,413 - one child
$7,292 - two children
$8,204 - three or more

Phase-out rate:
7.65% - no children
15.98% - one child
21.06% - two or more

Phase-out start:
Head of Household filers:
$10,830 - no children
$23,810 - one or more children
Joint filers:
$18,080 - no children
$31,060 - one or more | See Table 2 | +| **Child and Dependent Care Tax Credit** | Childcare expenses included for children under 18 | Childcare expenses included for children under 18 | Childcare expenses included only for children under 18 | +| **Dependent Exemptions** | $0 | $5,300 | $0 | +| **Head of Household Status** | Active | Active | Repealed | +| **SALT Deduction** | $10,000 per filer | Uncapped | $10,000 per person | + ## Child Tax Credit (CTC) @@ -17,7 +26,13 @@ The FFA consolidates the EITC structure from eight household types (single/joint Table 2: EITC reform parameters[^1] [^1]: Italicized parameters are derived from other parameters. -![](https://cdn-images-1.medium.com/max/3008/1*8GKkbgodYVZspHO6a-Fo3A.png) +| Marital Status | Children | Phase-in Rate | Phase-in Earnings Range | Maximum Credit | Phase-out AGI Threshold | Phase-out Rate | AGI Limit | +|----------------|---------------|---------------|--------------------------|----------------|--------------------------|----------------|-----------| +| Single | No children | 7.65% | $9,150 | $700 | $10,000 | 10% | $17,000 | +| Single | With children | 34% | $12,647 | $4,300 | $33,000 | 25% | $50,200 | +| Married | No children | 7.65% | $18,301 | $1,400 | $20,000 | 10% | $34,000 | +| Married | With children | 34% | $14,706 | $5,000 | $43,000 | 25% | $63,000 | + ## Repeal head of household filing status @@ -79,7 +94,9 @@ In 2026, we project that the FFA would raise [$24.3 billion](https://policyengin From 2026 to 2034, we project the FFA would raise $534.7 billion. The annual budgetary surplus will increase each year until 2034. Considering only the federal budgetary impact, the FFA would raise $493.72 over the entire budget window. -![](https://cdn-images-1.medium.com/max/5028/1*0gzNJjwZm96oFVFpGBpzfg.png) +| Year | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | Total | +| ------------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ----- | +| Federal Budgetary Impact ($bn) | 0.0 | -20.36 | -27.22 | -34.89 | -42.98 | -52.34 | -62.3 | -72.97 | -83.97 | -97.29 | -493.72 | ![](https://cdn-images-1.medium.com/max/2640/0*mwlUL3jthCnKvis8)