Senators expect informal conversations on Build Back Better to pick up when the Senate returns to Washington next week, according to a person familiar with the situation. 

Democrats still don’t know what Manchin will ultimately agree to and whether he needs to see lower monthly inflation numbers before ending his pause in the talks, the person said. Manchin has said he’s open to negotiating again with the White House on the stalled plan. 

Manchin suggested scaling back the tax benefit for couples earning between $200,000 and $400,000 and he said he didn’t believe that parents who didn’t earn any income should be able to get the credit. Democrats last year allowed those without income tax liability to claim the credit in the form of monthly advanced payments.

Last year Democrats expanded the credit for households making up to about $150,000 a year, increasing the child subsidy to as much as $3,600 per child, up from $2,000. The credit phases out for parents making above that income threshold.

Scaling back the child tax credit based on income is likely to conflict with Biden’s pledge to not raise taxes on anyone earning less than $400,000.

Biden at a news conference this month suggested that the child tax credit may need to be dropped from the plan for it to pass the Senate. That prompted key Democratic senators, led by Colorado’s Michael Bennet, to demand the credit be retained as a centerpiece of the bill.

With assistance from Laura Davison.

This article was provided by Bloomberg News.

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