President Donald Trump's proposal of expanding the Child Tax Credit (CTC) from $1,000 to $1,600 will exclude all families with two children who are making less than $16,333 a year. This will affect roughly 10 million children.
How the child tax credit expansion excludes millions
According to the Center for Budget and Policy Priorities (CBPP), millions of low income families will get nothing because the tax cut will not apply to “millions of children whose parents work in low-wage jobs."
How do we know this? According to the Social Security Administration, millions of working Americans make less than $30,000 a year. So, just how many people will be excluded from the CTC? More than 10 million children in low-income working families would be excluded entirely.
But wait, there's more...
In addition, another 13 million children in low- and modest-income working families would receive less than the full $600 per-child increase. The tax cut is being proclaimed widely as "providing a credit of $300 for each parent and non-child dependent to help all families with their everyday expenses.” But, in fact, it is excluding millions who really need it.
The CBPP came to these conclusions after analyzing the impact of federal and state government budget policies from a progressive perspective.
To learn more about this issue, visit www.cbpp.org/blog/house-gops-child-tax-credit-expansion-excludes-millions-of-children-in-lower-income-working
