Washington, D.C. — Today, Rep. Rosa DeLauro (D-CT) introduced the Young Child Tax Credit Act to invest in families with young children and strengthen the Child Tax Credit, or CTC. Neera Tanden, President and CEO of the Center for American Progress, issued the following statement in response to this new bill:
This legislation represents an enormous step forward for working families. An abundance of research underscores that investing in the early years of a child’s life not only helps families in the short-term, but also has long-term positive impacts on that child’s education, employment, earnings, and health. 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, such as the one Rep. DeLauro is championing, would bolster middle-class economic security, dramatically reduce child poverty, boost economic mobility, and help level the playing field for communities of color.
I applaud Rep. DeLauro for her leadership on behalf of working families and urge Congress to swiftly pass this important legislation.
In August, CAP issued a series of recommendations to enhance the existing Child Tax Credit and create a new Young Child Tax Credit. Our 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, that 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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