Child Tax Credit: Should More States Adopt the Program?


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The enhanced child tax credit has provided a much-needed COVID-era financial lifeline to American families in 2021, reaching nearly 40 million households and helping 65 million children, according to a recent fact sheet from the White House. The positive impact of the benefit prompted Sen. Mitt Romney (R-Utah) to propose reintroducing the CTC to lawmakers for 2022 as the Family Security Act.

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Some policy experts support not only expanding the federal child tax credit program, but also having more states create and improve their own programs. Nine states have already adopted and funded some form of credit, according to the Center on Budget and Policy Priorities (CBPP). These states are California, Colorado, Idaho, Maine, Maryland, Massachusetts, New Mexico, New York, and Oklahoma.

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Samantha Waxman, senior policy analyst at CBPP, is one of the proponents of increased adoption of CTC programs by the state. In a recent column, she pointed to research showing that monthly CTC payments provided through the US bailout “significantly reduce” monthly child poverty and help families pay for food, utilities, clothing, rent and education costs.

The CBPP estimated that the federal CLC expansion in 2021 helped lift more than 4 million children above the federal poverty level.

“These credits are critical to making meaningful progress in addressing poverty and long-standing racial disparities,” Waxman wrote. “Research suggests that additional income can lead to significant improvements in access to nutritious food, maternal and child health, children’s years of completed schooling, and reduced family stress. low income.”

Another benefit, she said, is that tax credits such as the CTC help low-income families afford basic necessities, which in turn supports local businesses and local economies. states.

“Unfortunately, a number of states are considering income tax cuts that would primarily benefit wealthy households and profitable businesses,” Waxman wrote. “It will not help those most affected by the COVID-19 crisis. Passing costly and permanent tax cuts based on temporary budget surpluses would erode revenue from crucial community assets such as quality K-12 schools, affordable health care, and functioning infrastructure while further deepening inequality. racial and economic.

Better politics, Waxman said, is for state legislators across the United States to create, improve or expand CTCs and other tax credits to help ensure a fairer distribution of government assets.

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“The costs of enacting or improving existing credits are generally low enough that states can absorb them without generating additional revenue,” Waxman wrote. “If they need to mobilize modest additional resources, States can choose from a range of sensible means to do so. Either way, the substantial long-term benefits of child tax credits to families, communities, and local economies are well worth it.

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About the Author

Vance Cariaga is a London-based writer, editor and journalist who has previously held positions at Investor’s Business Daily, The Charlotte Business Journal and The Charlotte Observer. His work has also appeared in Charlotte Magazine, Street & Smith’s Sports Business Journal, and Business North Carolina magazine. He holds a BA in English from Appalachian State University and studied journalism at the University of South Carolina. His reporting has earned him awards from the North Carolina Press Association, Green Eyeshade Awards and AlterNet. In addition to journalism, he has worked in banking, accounting and restaurant management. A North Carolina native who also writes fiction, Vance’s short story “Saint Christopher” placed second in the 2019 Writer’s Digest short story competition. Two of her short stories appear in With One Eye on the Cows, an anthology published by Ad Hoc Fiction in 2019. Her first novel, Voodoo Hideaway, is published in 2021 by Atmosphere Press.

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