The Ways & Means Committee’s Building an Economy for Families Act takes action for working families. It permanently expands the #ChildTaxCredit, a crucial lifeline keeping households afloat. #BEFAct
On July 15, 2021, more than 35 million families with 60 million children got the first Child Tax Credit (CTC) payments as part of the new law. The CTC will lift 5 million children above the poverty line. Funds are automatically deposited into bank accounts or via checks.
The funds are already making a huge difference. According to Bank of America Global Research households that received the Child Tax Credit "got a temporary boost to spending following the distribution". According to ABC News families are paying off rent, food, and debts with the child tax credit.
The CTC is helping families buy food and pay bills. Research by Brookings found that there could be a drastic reduction of child poverty across groups including Black, Hispanic, and Native American children.
The Child Tax Credit is considered by many to be a type of basic-income policy. The Basic Income Earth Network defines Basic Income as: "A Basic Income is a periodic cash payment unconditionally delivered to all on an individual basis, without means-test or work requirement." While that definition includes universality, in the CTC case the basic income goes to families with children. There is no work requirement and no strings attached for families to benefit from the predictable income.
The #BuildingAnEconomyForFamiliesAct aims to permanently extend the refundable worker-and-family-focused tax credits included in the American Rescue Plan, including the Child Tax Credit (CTC), Earned Income Tax Credit, and The Child & Dependent Care Credit.
Follow Fighting Chance for Families and show your support with the hashtag #MakeTheCTCPermanent and #BEFAct
Making the CTC Permanent would empower families and children so that their children are better prepared to meet the many challenges facing them in the future.