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The Progressive Way to Slash Child Poverty

  • February 12, 2021
  • Veronica Goodman
  • Ben Ritz

Written by Veronica Goodman and Ben Ritz 

On Monday, congressional Democrats unveiled a proposal to dramatically expand the Child Tax Credit (CTC), one of the bigger policies in President Biden’s $1.9 trillion American Rescue Plan. On the same day, Sen. Mitt Romney (R-Utah) gave the concept bipartisan backing by offering a Republican proposal for turning the CTC into an expanded child allowance. Both proposals would raise the current benefit from $2,000 per child to $3,000, provide additional credit for children under age six, make the full value of the benefit available for low-income families, deliver the payments in a monthly installment instead of a lump sum at the end of the year and dramatically reduce child poverty in America.

It’s no surprise that policymakers in both parties are prioritizing child poverty. As many as one in seven children, or close to 11 million, are poor. The United States consistently has among the highest levels of child poverty among the world’s wealthiest countries, many of which offer so-called “child allowances” to support low-income parents. The Democratic proposal would not just help these kids in the short term by lifting an estimated five million children out of poverty. It would also have long-run benefits for social mobility and support Black and Hispanic families the most. This Democratic proposal is estimated to cut child poverty nearly in half while the Romney proposal would reduce it by one-third.

Read the rest here.

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