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Showing posts with the label Child Tax Credit

Social and Economic Impact of the Child Tax Credit (CTC) on Maternal Mortality

In a June, 2021 report on the Child Tax Credit (CTC), we noted that the Biden Administration predicted the CTC would cut child poverty by half. Prior to the enactment of the CTC, economists predicted that it would have a significant impact on the U.S. economy. For the first time since July’s CTC’s implementation, we have data that can help determine the impact of the initiative on both consumer spending and household stability. New research shows CTC’s positive impact on U.S. social and economic activity. In an August 2021 report, the Niskanen Center forecast a $27 billion dollar increase, over the next 12 months, in consumer spending. Secondarily, they predict this jump in spending will generate another $1.9 billion in revenue from state and local sales taxes.[1] Their forecast also predicts an increase of 500,000 median wage level jobs. These are significant and positive impacts. In addition to elevated consumer spending, CTC will have significant positive impacts on low-to-middle in

The Child Tax Credit Program: Up to $20,000 in Cash to Parents by Grace Pottebaum, Impact Investing Intern, Garrett Evangelical-Theological Seminary

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On June 17th, 2021, the Biden Administration announced the Child Tax Credit (part of the American Rescue Plan) in order to combat child poverty. To be eligible for this program, individuals must file taxes and have income no greater than $50,000. This program gives $3,000 to parents with children between the ages 6-17 and $3,600 to those who have children under the age of 6. The Biden Administration believes that it is a moral imperative to make sure this tax credit reaches parents struggling to take care of their children. In a critical modification not seen before, this programs gives parents who have not filed taxes the ability to receive tax credit through a simple non-tax-filer tool specifically for this child tax credit.  This program has several distinctive features:  First-time payments will be distributed in monthly $500 increments.  Furthermore, parents who have not filed taxes are encouraged to file immediately, since this tax credit program allows them to receive stimulus p