Dems counter Trump law with bill to expand tax credits

Democratic senators on Wednesday introduced legislation to expand tax credits for workers and families, saying the measure would act as a counterweight to President TrumpDonald John TrumpAmash responds to 'Send her back' chants at Trump rally: 'This is how history's worst episodes begin' McConnell: Trump 'on to something' with attacks on Dem congresswomen Trump blasts 'corrupt' Puerto Rico's leaders amid political crisis MORE's 2017 tax-cut law.

The bill would expand two tax credits: the earned income tax credit (EITC), which benefits low- and middle-income workers, and the child tax credit (CTC), for families with children.

"Our bill would help put more money back in the pockets of working families and set children up for future success,” Sen. Sherrod BrownSherrod Campbell BrownThe Hill's Morning Report - A raucous debate on race ends with Trump admonishment On The Money: Senators unload on Facebook cryptocurrency | Tech giants on defensive at antitrust hearing | Democrats ask Labor Department to investigate Amazon warehouses Hillicon Valley: Senators unload on Facebook cryptocurrency plan | Trump vows to 'take a look' at Google's ties to China | Google denies working with China's military | Tech execs on defensive at antitrust hearing | Bill would bar business with Huawei MORE (D-Ohio), a lead sponsor of the bill, said in a statement.

Senate Democrats drew a contrast between their bill and Trump's 2017 tax law, which they argue primarily benefited wealthy individuals and corporations. The law includes an expansion of the CTC, and the Democrats' bill would expand it further to help people who didn't benefit from the full increase of the credit under the 2017 law.

The liberal-leaning Center on Budget and Policy Priorities estimated that the new bill would lift 29 million people, including 11 million children, above or closer to the poverty line.

The measure is sponsored by more than 40 Democratic and independent senators, including Brown, Sen. Michael BennetMichael Farrand BennetNew CDC overdose estimates are nothing to celebrate Bullock makes CNN debate stage Sanders draws line as 2020 health care battle heats up MORE (D-Colo.) and Sen. Ron WydenRonald (Ron) Lee WydenHillicon Valley: Twitter says Trump 'go back' tweet didn't violate rules | Unions back protests targeting Amazon 'Prime Day' | Mnuchin voices 'serious concerns' about Facebook crypto project | Congress mobilizes on cyber threats to electric grid Top Democrat demands answers on election equipment vulnerabilities Advocates frustrated over pace of drug price reform MORE (D-Ore.). All three serve on the Senate's tax-writing committee, and Wyden is the ranking member on the panel.

"We need to rewrite the tax code in a way that benefits working families – and expanding the Child Tax Credit and Earned Income Tax Credit is an effective path to achieve that,” Bennet said.

For workers without children, the bill would raise the maximum EITC amount from $530 to $2,070 and expand the age range of eligible recipients. For workers with children, the bill would increase the EITC by about 25 percent. Additionally, EITC recipients would be able to get a one-time, $500 advance of their credit.

The bill would make the CTC fully refundable, and create a new credit for families with children ages five and under. It also would provide tax relief for people living in Puerto Rico and give the IRS the authority to create standards for paid tax-return preparers.