Posted on Jan 2, 2024
To tackle poverty, more states will offer bigger child tax credits in 2024
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https://www.npr.org/2024/01/01/ [login to see] /child-tax-credit-bigger-states-2024-poverty
Many Americans took a double whammy to the pocketbook this year: Prices for things like food and rent rose, and federal pandemic aid continued to peter out. But a string of states took a cue from one of those relief measures — the expanded federal child tax credit — and are stepping in to help bridge the gap.
That tax credit was a pandemic success story. Enacted in 2021, it cut child poverty in half before it expired at the end of that year, and poverty rates shot right back up.
Since then, the number of states that have created their own permanent child tax credit has doubled.
Many Americans took a double whammy to the pocketbook this year: Prices for things like food and rent rose, and federal pandemic aid continued to peter out. But a string of states took a cue from one of those relief measures — the expanded federal child tax credit — and are stepping in to help bridge the gap.
That tax credit was a pandemic success story. Enacted in 2021, it cut child poverty in half before it expired at the end of that year, and poverty rates shot right back up.
Since then, the number of states that have created their own permanent child tax credit has doubled.
To tackle poverty, more states will offer bigger child tax credits in 2024
Posted from npr.org
Taxes
Children
Posted 4 mo ago
Responses: 4
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PO1 William "Chip" Nagel good day Brother William, always informational and of the most interesting. Thanks for sharing, have a blessed day!
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PO1 William "Chip" Nagel
..."Expanding these benefits in states has bipartisan support
In 2022, Congress tried and failed to revive its expanded child tax credit. Kevin Corinth, with the conservative American Enterprise Institute, says one concern among Republicans is that with a permanent credit, some parents would stop working.
"While the state-specific child tax credits are smaller than what we've seen at the federal level," Corinth says, "we still would likely see decreasing employment of parents, and that could offset some of the initial poverty decrease."
But that's been less of an issue at the state level, even if most states that have passed child tax credits are led by Democrats.
"Even in blue states, we're often seeing tax credits passing with bipartisan support," says Adam Ruben of the left-leaning Economic Security Project, which supports more such benefits.
One advocate in Maine told Ruben that the Republican committee chair likened expanding a tax credit to a tax cut. "And the advocate said, 'Yeah, it's a tax cut for working families.' And the Republican guy goes, 'Well, we're for tax cuts.' "
Now that more states have passed these measures, they are focused on getting the word out. Many families who qualify for new child tax credits may not make enough to pay any taxes, and so may not be used to filing a tax return.
The big push is to make sure they do — so people can claim these new benefits in 2024."
..."Expanding these benefits in states has bipartisan support
In 2022, Congress tried and failed to revive its expanded child tax credit. Kevin Corinth, with the conservative American Enterprise Institute, says one concern among Republicans is that with a permanent credit, some parents would stop working.
"While the state-specific child tax credits are smaller than what we've seen at the federal level," Corinth says, "we still would likely see decreasing employment of parents, and that could offset some of the initial poverty decrease."
But that's been less of an issue at the state level, even if most states that have passed child tax credits are led by Democrats.
"Even in blue states, we're often seeing tax credits passing with bipartisan support," says Adam Ruben of the left-leaning Economic Security Project, which supports more such benefits.
One advocate in Maine told Ruben that the Republican committee chair likened expanding a tax credit to a tax cut. "And the advocate said, 'Yeah, it's a tax cut for working families.' And the Republican guy goes, 'Well, we're for tax cuts.' "
Now that more states have passed these measures, they are focused on getting the word out. Many families who qualify for new child tax credits may not make enough to pay any taxes, and so may not be used to filing a tax return.
The big push is to make sure they do — so people can claim these new benefits in 2024."
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Spending in the name of children very seldom has its states desired effect. MHO
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