Testimony Understanding How the Expanded Child Tax Credit Reduced Poverty and Hardship in 2021
Statement before the Subcommittee on Work and Welfare, Ways and Means Committee, US House of Representatives
Elaine Maag
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For children to thrive, they need to have their basic needs met. When needs go unmet, children’s opportunities are compromised. The Census Bureau estimates that 12.4 percent of children were living below the poverty line in 2022, a tremendous jump from the 5.2 percent of children living in poverty in 2021. The jump in child poverty from 2021 to 2022 was largely driven by the expiration of policies enacted in the American Rescue Plan Act, including an expanded child tax credit. The expanded child tax credit was a powerful tool for reducing child poverty and related hardships because it delivered the full benefit of the credit to families with very low incomes.

Research Areas Children and youth Taxes and budgets Social safety net
Tags Child Tax Credit Families with low incomes Taxes and social policy Refundable tax credits Earned income tax credit
Policy Centers Urban-Brookings Tax Policy Center
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