Reinstatement of child tax credit amid inflation

More than 40 ethnic justice organizations are calling on Congressional leaders to return the upgraded Child Tax Credit. In a letter to Senate Majority Leader Chuck Schumer last month; the organizations wrote, “The impact of the end of the monthly Tax Credit payments has been very deep; painful – in color communities.”

Big names like NAACP, Economic Security Project, The Leadership Conference, Community Change Action; National Urban League, and Unidos are six of the 40 signatory organizations.

Their inspiration is easy to understand. A CNBC report revealed that nearly 50% of families who received monthly payments with an improved; Child Tax Credit were unable to pay enough to feed their families; five months after the payments ended in December. 2021. In short, families are struggling.

Where the money went: A child tax credit used for rent, food and debts

How the improved baby tax credit has helped

According to an NPR report, improved Child Tax Credit benefits have reached more than 61 million children, and payments made to bank accounts between July and December 2021 have reduced child poverty by almost 30%.

President Joe Biden hopes that monthly payments will continue at least by 2025, but not a single Republican lawyer supports the bill. So after six months of helping American families, the extended Child Tax Credit was abolished in Congress.

Despite fears that the money would be wasted, analyzing U.S. data The Census Bureau conducted by the Center on Budget and Policy Priorities found that 91% of low-income households use advanced child Tax Credit benefits to pay for basic needs, such as food and shelter. over their heads.child tax

Despite the success, the war is on but what about the child tax

The number of children living in poverty reached post-war records even before COVID-19 landed on the American coast. Millions of children were starving and going to school hungry.

When first considered in Congress, the upgraded Child Tax Credit was intended to reduce the number of hungry children and reduce the financial burden on millions of families.

However, GOP lawmakers are fighting for improved aid. To illustrate what some have thought, one has to look no further than the press conference from Republican MPs Mike Lee and Marco Rubio.

In the end, every Republican lawyer voted against giving aid, just to ensure that unemployed American children could not benefit. Although the bill was passed, the agreement stated that the improved Child Tax Credit benefits would last only six months.

The idea that a very different Congress will revisit extended Child Tax Credit benefits before the mid-term election may not be possible but may seem impossible.

Child tax: Nation of family values?

Politicians love to support their family values, but what does that mean when lawmakers vote in favour of a majority, fearing that the children of unemployed parents will get the food they need to succeed?

Among the industrialized nations, the U.S. is notorious for its lack of support for children and families. To give the impression that the U.S. how slowly it grows, Pew Research reports that of the 41 countries under consideration, the U.S. is the only one that does not provide paid parental leave.

Here is a brief sample of how some countries are working to build stronger families:

  • Parents in Denmark receive $ 673 per quarter for each child up to the age of 18.
  • Swedish parents are sent $ 136 per child each month.
  • Canadian parents earning less than $ 32,000 receive $ 569 per child under the age of six.
  • Norway, Finland, Denmark, and Iceland each spend more than $ 20,000 per child on foster care.
  • Even a poor country like Chile spends about $ 8,500 per child.
  • In a wealthy nation, child starvation is a deciding factor

According to the Urban Institute, aligning with President Biden’s plan to increase the improved debt by 2025 would significantly reduce child poverty and lift more than four million children out of poverty.

In their letter to Senator Schumer, the organizations wrote, “Poverty is a policy issue. Allowing millions of children, including more than 2.5 million Black and Latino children, to return to poverty is also a political decision.”

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The fact that so many legislators voted not to give $ 3,600; to families with a child under the age of six does not mean they will go further. But only time will tell that American families; will see any future help in the form of an improved or repayable Child Tax Debt.

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