RELEASE: Expanding the Child Tax Credit Would Lead to a Stronger and More Equitable Recovery
Washington, D.C. — A new analysis from the Center for American Progress examines the benefits of expanding the child tax credit along the lines of what is proposed in the American Rescue Plan. The issue brief finds that provisions of the child tax credit expansion in the American Rescue Plan would have a dramatic impact on child poverty and be more effective at reducing child poverty than previous expansions. Key benefits include:
- Reducing child poverty by 45 percent, lifting nearly 5 million children out of poverty
- Reaching the lowest-income families, who are currently unable to benefit from the full child tax credit
- Substantially benefiting Black and Hispanic families
- Helping the United States recover from the recession and bringing large returns over the long run
“The child tax credit proposal in the American Rescue Plan presents a golden opportunity to reduce child poverty,” said Galen Hendricks, research associate at CAP and co-author of the brief. “By pairing child tax credits with existing social safety net programs, we can help millions of low- and middle-income families meet the growing costs of raising children, shrink racial disparities in child poverty, and build a stronger and more equitable recovery.”
The child tax credit proposal in the American Rescue Plan is based on a proposal first outlined in a report by the Center for American Progress in 2015.
Read the analysis: “An Expanded Child Tax Credit Would Lift Millions of Children Out of Poverty” by Galen Hendricks and Lorena Roque
For more information on this topic or to speak to an expert, contact Julia Cusick at firstname.lastname@example.org.