Washington D.C., October 26, 2017 — The Niskanen Center applauds Senators Michael Bennet (D-CO) and Sherrod Brown (D-OH) for their new proposal, the American Family Act of 2017, which would create a fully refundable Child Tax Credit, delivered monthly to match the needs of families, and with additional resources provided for young children.
The United States has among the highest child poverty rates in the developed world, a fact which is largely explained by differences in policies like these. Indeed, evidence has mounted from more than twenty countries with per-child benefits, including countries with child allowances like Canada, Australia and the U.K., that periodic cash transfers to households with children is the single most effective policy for reducing child poverty, improving family stability, and creating lasting improvements in child health and educational outcomes.
“The power of a child allowance lies in the flexibility and fairness provided by cash, which empowers parents to allocate resources to the diverse and often unpredictable needs of their children in ways other kinds of benefits simply cannot,” says Samuel Hammond, Niskanen’s poverty and welfare analyst.
“Expanding parental choice, and reducing child poverty — particularly when done in a way guided by the best available evidence — are goals we are proud to stand behind,” Hammond adds.
The Niskanen Center is a Washington, D.C.-based libertarian think tank that works to change public policy through direct engagement in the policymaking process.