Both of these things need to happen. Not only is it the right policy (people should pay their debts and we shouldn’t use the IRS as a welfare agency), but it will squeeze a little money out of the consumer economy to ease inflation.
President Biden is set to allow payments on student loans to resume, just as expanded child tax credits end, potentially putting millions of Americans in a financial bind just as COVID-19 cases are rising.
Democrats passed the expanded child tax credit as part of their pandemic relief bill in March, resulting in a $300 monthly payment per child to most families. The last of those payments went out earlier this month, and while the White House had been planning to extend the credits through its Build Back Better legislation, that bill has stalled in the Senate.