What the Child Tax Credit Expansion Accomplished
Jun 17, 2024
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Part of the American Rescue Plan in March of 2021, which came about to help families in the wake of the Covid 19 worldwide pandemic, was the expansion of the child tax credit. The child tax credit had been a lump some payment of $2,000 per child paid to taxpayers at tax time. The benefit was increased to $3,600 or $3,000 per child, depending on their age, and the funds were paid in six monthly payments of $300 or $250 with the rest coming at tax time. This increase in payment came with the closing of an odd loophole that had prevented one-third of black and hispanic children from getting assistance because their families did not earn enough money to qualify for the benefit.
These payments reduced child poverty by approximately thirty percent and decreased food insufficiency by about twenty-six percent! Reserch showed that families used the surplus funds on basic needs like food, clothing, school supplies, utilities and rent. No one was running off to Vegas or quitting their jobs in response to this bump in income. It was enough to make their lives better but not enough to allow parents to discontinue employement. The price tag for the increase was $100 billion. So, now we know the true cost of raising 61.2 million children out of poverty and offering them food security.
Shockingly, despite it's measurable success, this increase in the child credit only lasted for six months because Congress could not agree to its continuity. It seems to me a simple decision to put this child tax credit extension back in the budget. While Congress debates this issue, think about all those families that are slipping back into poverty and hunger. This one legislative change gave so many families an opportunity to be in the middle class. Maybe the next administration can bring this family issue to the forefront. The cost is worth it because the results are so far-reaching and positive. Read the article here:
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