Skip to content

Child Poverty

Policymakers Should Expand Child Tax Credit In Year-End Legislation

The Child Tax Credit expansion drove child poverty sharply downward in 2021. Combined with other relief efforts, the expansion helped lower child poverty by more than 40 percent between 2020 and 2021, reaching a record low of 5.2 percent, Census Bureau data released last week show. The credit’s expansion expired at the end of last year, but policymakers can renew this successful poverty-fighting policy in year-end bipartisan tax legislation. There is pressure on Congress from business interests to delay a corporate tax increase; Congress should not consider any business tax breaks without also expanding the Child Tax Credit. The new Census data are the clearest evidence to date of the expanded Child Tax Credit’s success.

Inaction On Tax Credit Condemns Millions Of Children To Poverty

Working-class families are faced with an extra burden as the new year begins – the expiration of the expanded child tax credit. The expansion provided support for families struggling during the pandemic by changing some key factors of the already existing credit. Namely, the expansion increased the annual amount per child from $2,000 to between $3,000 and $3,600, it paid the credit in monthly installments rather than in one lump sum, and it expanded the full benefits of the credit to families who previously had been ruled ineligible due to their income being too low.  On the same day that the CTC expansion expired, there were almost 450,000 new COVID cases reported, almost double the number reported at the same time in 2021.
Sign Up To Our Daily Digest

Independent media outlets are being suppressed and dropped by corporations like Google, Facebook and Twitter. Sign up for our daily email digest before it’s too late so you don’t miss the latest movement news.