Following the presentation of its new report on the record decline in child poverty thanks to the latest expanded Child Tax Credit, the Center on Budget and Policy Priorities (CBPP) raised on Monday the need to expand the credit this year.
Key findings of the report include:
- The expansion of the Child Tax Credit pushed child poverty down sharply in 2021.
- In addition to other relief efforts, the expansion helped reduce child poverty by more than 40 percent between 2020 and 2021, reaching a record low of 5.2 percent.
- Had the Child Tax Credit not been expanded, an additional 752,000 Hispanic children would have been in poverty in 2021.
In a statement, CBPP said that “policymakers have an opportunity to renew this successful anti-poverty policy in bipartisan tax legislation at the end of the year.”
In this regard, he said that there is an evident pressure from business interests on Congress, “to delay an increase in the corporate tax.”
“Congress should not consider any tax breaks for businesses without also expanding the Child Tax Credit,” the CBPP statement said.
In this regard, he said that Congress and the Biden Administration “now face a tough choice: expand the Child Tax Credit or allow all the progress against child poverty made in the last two years to evaporate, with millions of children needlessly falling for below the poverty line.