Child poverty increased without the Child Tax Credit
Millions of American families struggle to meet the basic needs of their children.
At the start of 2022, approximately thirty-five million American families were cut off from monthly payments of the U.S. Bailout-approved Enhanced Child Tax Credit, which offered eligible families up to $3,600 for a child under six and up to $3,000 for children aged six to seventeen. This amounted to a payment of $250 or $300 for each child each month.
These families can now claim the second half of their enhanced credits by filing a 2021 federal tax return. However, it appears the damage has already been done.
By Business Interna new study from Columbia University’s Center on Poverty and Social Policy found that 3.4 million more children lived in poverty in February than in December 2021.
“Monthly poverty remained high in February 2022, with a poverty rate of 14.4% for the entire US population. This is a slight decline from 14.7% in January 2022, but a continuation of the December 2021 monthly poverty rate peak of 12.5%,” the researchers wrote.
“Overall, 6 million more people were in poverty in February than in December. Child poverty has seen a slight decline (0.3 percentage points) from 17.0% in January to 16.7% in February 2022. These levels also represent a continuation of the sharp increase in child poverty from December 2021, when the monthly child poverty rate was 12.1%,” they continued.
The future of CTC
For the improved appropriations to continue for another year, Democrats needed the passage of the highly controversial Build Back Better legislation, which did not happen largely due to opposition from Senator Joe Manchin ( D-WV). The conservative Democrat, like most Republicans, believes that extending the appropriations would only discourage people from working and that any additional federal spending would only exacerbate inflation, which has reached a four-decade high.
“Without his vote, Democrats cannot bypass Republicans and approve the package on their own in the Senate 50-50,” Business Intern wrote. There are “few signs that Congress will revive him anytime soon and Biden has already admitted he may not be successful in securing his renewal if Democrats try to revive their spending plans.”
A bipartisan effort
More recently, according to Cleveland.com, Sen. Sherrod Brown (D-Ohio) held discussions with Republicans, including Sen. Mitt Romney (R-Utah), about permanently adopting an expanded form of credit. child tax.
“It’s going to happen, and hopefully it’s going to happen in a bipartisan way,” Brown noted during a press call.
Meanwhile, Romney has proposed his own version of a monthly cash benefit program called the Family Security Act. The plan, which comes with work requirements, aims to give eligible families with children up to age five $350 per child and families with older children up to $250 per child. .
Ethen Kim Lieser is a Washington State-based science and technology editor who has held positions at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow him or contact him on LinkedIn.