The House may be just days away from voting on a bipartisan tax bill that would lift as many as 400,000 children out of poverty.
H.R. 7024 would make an immediate and impactful change in low-income families’ ability to access basic needs and would lead to healthier children.
As recently as this past October, more than 1 in 3 people with children in households earning less than $25,000 said they sometimes or often did not have enough to eat in the previous week.1 Similar hardship was also true of more than 1 in 5 Latino adults with children and of more than 1 in 4 Black adults with children.
The improvements in the bill heading for the House floor would give struggling families more money for food, for rent, and for their heating bills. A mom with two children earning $15,000 would get a $3,600 CTC, $1,725 more than under the law today, and it will rise more over the next two years.
The House has passed the Tax Relief for American Families and Workers Act out of committee and it now goes to the full House for a vote as soon as next week. Advocates insisted that no corporate tax breaks be passed without including Child Tax Credit (CTC) improvements to help families―and the expansion of the CTC for lower-income families is included. We strongly urge members of Congress to actively support moving the bipartisan tax package at the first opportunity so it can take effect this tax season.
This bill would increase the Child Tax Credit for 80% of low-income families who do not currently receive the full credit. It would lift 400,000 children out of poverty in tax year 2023, rising to 500,000 above the poverty line in 2025.[1]
These improvements do not go as far as they should, and the organizations that make up the Coalition on Human Needs pledge to continue to advocate to expand the CTC further to help the very poorest children. But this bill, offering much needed income to about 16 million children in families struggling to meet basic needs, is a very important step that Congress must take.
A mother with two children earning $15,000 a year should not receive less help from the Child Tax Credit than a similar family earning $300,000 a year. Under current law, the family with $15,000 in earnings receives only $1,875, while the higher income family receives $4,000. If Congress passes the Tax Relief for American Families and Workers Act, the $15,000-earning family would see their CTC rise to $3,600 for tax year 2023. By 2025, their benefit would equal that of the wealthier family.
More than one in five children under the age of 17 will benefit in the first year of this legislation.[2] More than 1 in 3 Black and Latino children, and 3 in 10 American Indian/Alaska Native children will benefit from the bill because―due to centuries of racial and ethnic discrimination in employment and housing―their parents are more likely to be in low-income jobs.
Congress must invest in our children now. The future of our country depends on them.
Coalition on Human Needs
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