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User:Jaydavidmartin/Child tax credit (United States)

< User:Jaydavidmartin

Lower benefits for low-income people edit

The child tax credit has been criticized for excluding low income-families—who are in most desperate need of financial assistance and who reap the largest relative gain in income from the benefit—from obtaining the full benefit or even any of the benefit.[1][2][3][4] Under the current CTC, the refundable benefit phases in at a rate of 15% and very low-income families making less than $2,500 receive no benefit. As a result, about one-in-five families with eligible children have incomes too low to receive the full credit.[5] Furthermore, according to Columbia University's Center on Poverty and Social Policy, over 50% of black and Hispanic children are in families with incomes too low to receive the full benefit and nearly 1-in-5 black children are in families with incomes too low to receive any of the credit.[6]

Excluding the poorest families from the full benefit substantially reduces the poverty alleviation effects of the CTC: the Jain Family Institute, for instance, estimates that making the child tax credit fully refundable—without any change to benefit levels—would reduce child poverty by 19%.[7]

  1. ^ Greenstein, Robert; Maag, Elaine; Huang, Chye-Ching; Horton, Emily; Cho, Chloe (April 5, 2018). "Improving the Child Tax Credit for Very Low-Income Families". Center on Budget and Policy Priorities. Archived from the original on August 16, 2022. Retrieved September 19, 2022.
  2. ^ Maag, Elaine (July 30, 2018). "Who Benefits from Expanding the EITC or CTC?" (PDF). Urban Institute. Archived (PDF) from the original on September 19, 2022. Retrieved September 19, 2022.
  3. ^ Matthews, Dylan (April 27, 2017). "Child poverty in the US is a disgrace. Experts are embracing this simple plan to cut it". Vox. Archived from the original on August 15, 2022. Retrieved September 19, 2022.
  4. ^ Bruenig, Matt (February 19, 2021). "Oren Cass Wants Child Benefits for Everyone But the Poor". People's Policy Project. Archived from the original on June 6, 2022. Retrieved September 19, 2022.
  5. ^ Crandall-Hollick, Margot L. (August 28, 2020). "The Child Tax Credit: Selected Legislative Proposals in the 116th Congress". Congressional Research Service. Archived from the original on September 23, 2021. Retrieved November 13, 2021.
  6. ^ Collyer, Sophie; Harris, David; Wimer, Christopher (May 13, 2019). "Left Behind: The One-Third of Children in Families Who Earn Too Little to Get the Full Child Tax Credit" (PDF). Poverty and Social Policy Brief. 3 (6). Archived (PDF) from the original on May 12, 2022 – via Columbia University.
  7. ^ Cite error: The named reference Jain was invoked but never defined (see the help page).
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