The expanded Child Tax Credit – part of the American Rescue Plan Act – has led to a larger tax credit and direct payments for American families in the last six months of 2021. The credit expired at the end of 2021, however, and as a last resort efforts to extend it by another year failed in the Senate at the end of 2021. As a result, families have had to make do this year without those checks. monthly.
This year alone, several states have adopted or considered adopting their own child tax credits, including Alabama and New Mexico. The latest state to try to do something similar is Illinois, the Central place reported.
A pair of bills in the Illinois legislature would serve to expand the earned income credit (EIC) and create a child tax credit (CTC) at the state level. The state does not currently offer its own child tax credit. “It’s been proven to affect poverty,” said Rep. Carol Ammons, an HB4920 sponsor. “This is an anti-poverty policy that we know works and brings direct relief to people.”
According to politicians, the legislation would make an additional 1.2 million people in the state eligible for the earned income credit and provide additional financial support to 3.6 million people.
“It really puts money back in the pockets of workers, so it increases their income so they can spend it in the economy,” said Allison Flanagan, associate director of budget and policy for the Center for Tax. and Budget Accountability, says in the ad. “You kind of get this duplication effect. It helps the household and those households will spend money.
A letter to the editor of Chicago Sun-Times this week showed how Illinoisans are struggling without federal child tax credit payments. “Families like mine were fortunate that the Child Tax Credit was distributed monthly last year, to offset rising prices. However, the end of those payments in January disrupted finances for families everywhere,” Colyn Belknap wrote in the letter. “The disruption could easily be resolved by lawmakers if they are willing to compromise on credit.”
Columbia’s Center on Poverty and Social Policy released a report last month showing that 3.7 million more children were in poverty in January this year, the first month after the tax credit expired. extended for children. This metric had fallen by a similar amount in the first month of credit being in place last year.
Stephen Silver, technology editor for The National Interest, is a journalist, essayist and film critic, who also contributes to The Philadelphia Inquirer, Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review and connect today. Co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.