While some families celebrated the recent Father’s Day holiday with laughter, gifts, and time with their loved ones, many others were struggling.
An estimated 3.7 million children in America fell into poverty in January when Congress failed to extend the Child Tax Credit (CTC) and the Earned Income Tax Credit (EITC) expansions, and the number is growing.
As inflation increases and families struggle to cover their basic needs, there is an urgent need to restore these expanded credits.
As inflation increases and families struggle to cover their basic needs, there is an urgent need to restore these expanded credits. Yet, instead of working toward an agreement to extend the CTC and EITC to help families in need, Congress has prioritized consideration of tax credits to help businesses.
The CTC Payment Could Provide Needed Relief from Inflation and Rising Prices
American families are getting squeezed by baby formula shortages, inflated diaper prices, lack of housing stability, rising food costs, and limited access to affordable child care. Gas prices have hit an average high of $4.919 a gallon. Further, inflation is costing the average U.S. family an added $296 per month. The average minimum CTC payment of $300 per month would help offset this cost increase and prevent more children from falling into poverty.
If the Senate can reach a consensus to reinstate the expanded CTC, it will lower the financial burden many families are experiencing. The most impacted groups will be low-and moderate-income households and families of color who are struggling to keep up with the current economic crisis.
No Tax Breaks for Corporations Without Tax Breaks for Families
The Child Tax Credit is one of our most proven anti-poverty policies. As Congress fails to extend the expanded Child Tax Credit, major corporations continue to push for tax breaks to increase their profits.
Lawmakers should not give businesses and corporations tax breaks without providing relief for families.
Businesses are pressuring lawmakers to add the Research and Development tax credit to any bill moving through Congress, and many members of Congress are taking note. This is a question of priorities. Congress cannot ignore the needs of struggling families while responding to the desires of the business community. Lawmakers should not give businesses and corporations tax breaks without providing relief for families.
To Help Families, We Have to Keep the Pressure on Congress
In a recent letter, the Authentic Benefit for Children (ABC) Coalition emphasized that “extending the refundable monthly CTC would provide immediate, meaningful relief to more than 35 million families with 65 million children.” That is approximately 90 percent of all kids in the United States.
Reducing child poverty is good for all of us and will lower the burden of the inflation prices affecting America’s most disenfranchised populations. While some critics worry that expanding these credits could contribute to inflation, researchers believe the Child Tax Credit is too small of a share of the economy to be inflationary.
Together, we must keep the pressure on to ensure lawmakers don’t prioritize tax breaks for businesses without helping families!