In Blog: Factually Speaking, Kids Count Blog Posts, Tax Policy

TAKE ACTION: Click here to ask your legislators to expand the Child Tax Credit today

In Michigan, 18% of our children live in poverty.

Families here in our state and around the country are working hard to make ends meet. They’re facing food and housing insecurities, high child care and transportation costs and other hardships.

Right now is a critical time for us to make a difference for these kids and their families.

Today, Congress has in front of it a bipartisan tax package that could make a major difference for our nation’s kids. It includes an expansion of the Child Tax Credit (CTC) that will create more economic security—especially for those families with low incomes.

The expansion would lift as many as 400,000 children above the poverty line nationally in its first year and an estimated half a million children or more once it takes full effect in 2025.

Roughly 19 million children in our country are excluded from the full $2,000 federal CTC—receiving only a partial credit or none at all—because their families earn too little.

These are the families that need the credit the most, but they’re being left out—because of the credit’s upside-down structure, they’re receiving far less than middle- and high-income households. The new CTC legislation would, in its first year, benefit more than 80% of these children. That’s around 16 million kids total, including nearly half a million here in Michigan.

Many pandemic-era investments played a major role in reducing child poverty. As those investments come to an end, and as families continue to struggle to pay for basic needs, an expanded CTC would make a meaningful difference in the lives of our fellow Michiganders.

Of course, the proposed expansion is more modest than the enhanced but temporary Child Tax Credit offered during the height of the pandemic, but it is an important move toward combating child poverty at a crucial time, especially given that child poverty more than doubled in our country from 2021 (5.2%) to 2022 (12.4%) according to the Supplemental Poverty Measure. The U.S. Census Bureau points to the expiration of several pandemic-era supports, including the temporary expansion of the Child Tax Credit, as playing a part in this troubling increase.

We have much to do when it comes to helping Michigan kids thrive, including some of our new policy priorities at the Michigan League for Public Policy, like creating a state Child Tax Credit and implementing a statewide Paid Family Leave program. But as we continue to fight for those policies, we recognize that the federal CTC is the foundation for so much positive change.

Time is running out, as Congress could vote as early as today on this bipartisan tax package. Let’s make sure we do our part to let leaders know that all American kids need their support.

TAKE ACTION: Click here to ask your legislators to expand the Child Tax Credit today