- United States
- Calif.
- Letter
Many people are facing food and housing insecurity, challenges with high child care costs, and dealing with other hardships that make it harder to make ends meet.
New data from the U.S. Census Bureau shows that in 2023, the Child Tax Credit (CTC) lifted 2.4 million people above the federal poverty line -- while important, falling far short of the 5.4 million lifted above the federal poverty line in 2021 by expanded monthly Child Tax Credit payments that included all children in low-income families. In 2021, child poverty decreased by 46% overall, with Black and Hispanic child poverty falling by 6.3 percentage points in each community, impacting 716,000 Black children and 1.2 million Hispanic children.
And then it was allowed to expire and child poverty skyrocketed back up. As you discuss tax priorities for large-scale tax legislation in 2025, I urge you to look at the latest data about poverty, hardship, and other measures for our country as a whole.
Expanding the Child Tax Credit fixes a major flaw in current law: over 18 million children and their families are excluded from the full credit because their parents' income is too low. Many parents who work at low wages cannot get the full CTC. A single parent earning $15,000 a year and who has two children will receive less than a family with a parent who has a higher paying job. This is a flaw that does nothing but exacerbate inequity and accelerate the racial wealth gap.
I know next year is an important year for tax policy, and you are in many conversations about your priorities already. I urge you to voice loud and clear that any tax legislation must prioritize investments in families and that includes expanding the Child Tax Credit for all children by making the credit fully refundable with no earnings requirement, and allowing it to provide meaningful support with regular monthly payments.