Samuel Hammond wrote this piece on the child tax credit in the Spotlight on Poverty and Opportunity on May 4, 2022. Access the full article here.
The 2021 expansion of the Child Tax Credit (CTC) led to the most significant reduction in child poverty in modern U.S. history. By extending full eligibility to all low income households, the credit raised nearly four million kids out of poverty, and helped stabilize the family finances of millions more.
Unfortunately, the expansion expired at the end of the year, and the chances of Congress renewing it have only grown slimmer by the day. With the demise of President Biden’s Build Back Better Act, a bipartisan expansion is now likely the best, if not only, path forward.
Reaching a consensus won’t be easy, but we owe it to America’s children to try. After all, child poverty is expensive. From reduced productivity to increased healthcare costs, researchers have quantified the social cost of childhood poverty in the United States at over $1 trillion annually. Policies that reduce child poverty thus have the potential to both enhance the wellbeing of children and enrich society as a whole.
Read the full article here.
Photo Credit: iStock