Washington, D.C. — Today, Sen. Sherrod Brown (D-OH) introduced new legislation that would help families with young children by strengthening the Child Tax Credit, or CTC. Center for American Progress President and CEO Neera Tanden issued the following statement on the announcement of this bill:
The costs associated with raising a young child, even for necessary items such as diapers and car seats, can put a financial strain on working families that are already stretched particularly thin. Harnessing the Child Tax Credit as a tool to invest in the next generation would help millions of families meet their children’s immediate needs while also providing greater economic stability. Last year, CAP found that a Young Child Tax Credit would bolster middle-class economic security, dramatically reduce child poverty, boost economic mobility, and help level the playing field for communities of color. Research demonstrates that investing in the early years of a child’s life both helps families in the short term and leads to long-term positive impacts on that child’s education, employment, earnings, and health.
This legislation is a positive step in helping families make inroads to the middle class and fight child poverty. I commend Sen. Brown for his commitment in supporting policies that make a difference for working families and urge Congress to pass this important legislation.
The bill is companion legislation to the Young Child Tax Credit Act, which was introduced in the House in March by Rep. Rosa DeLauro (D-CT).
Last year, CAP issued a series of recommendations to enhance the existing Child Tax Credit and create a new Young Child Tax Credit. The accompanying analysis found that the economic cost of child poverty in the United States is $672 billion per year, or nearly 4 percent of U.S. gross domestic product. This is due to higher health costs, lower educational outcomes, and increased spending on criminal justice. Additionally, the report highlighted how flat and declining wages amid rising costs are straining families’ ability to afford a middle-class lifestyle, with child-related costs accounting for nearly 70 percent of the middle-class squeeze for the typical two-parent, two-child family.
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