November 25, 2022

Child Tax Credit Advances to the Vermont State Legislature

While the federal government’s expanded child tax credit may have expired at the end of 2021, one state is seeking its own credit. A child tax credit bill passed the Vermont State House and passed the Senate.

According to the Longview News-Journal, the bill would “create a $1,200 refundable child tax credit for children 6 and under,” with a payment pattern similar to the federal version in 2021: half would be paid in monthly installments. , the other half being paid when filing the person’s income tax return.

According to the Vermont State Legislature website, the bill is now in the state Senate and is being reviewed by the Senate Finance Committee, to which it was referred on February 11. However, it is unclear what Gov. Phil Scott, a Republican, will do. do with the bill if it makes it to his office.

When the expanded child tax credit was introduced at the federal level last year, various studies showed that it was successful in reducing child poverty. Now that it has expired, another study found that poverty has risen again.

Columbia University’s Center on Poetry and Social Poverty released a report on Feb. 17 that found the monthly child poverty rate “dropped from 12.1% in December 2021 to 17% in January 2022. “, with 3.7 million more children in poverty in the first month without the credit.

“Between July and December 2021, the Internal Revenue Service (IRS) provided six months of advance child tax credit payments worth up to $250 per child ages 6 to 17 and up. to $300 per child under age 6, reaching more than 61 million children in more than 36 million households,” the Center’s study says. “The monthly child tax credit alone has 3 million children out of poverty in July; by December, it was lifting 3.7 million children out of poverty and reducing monthly child poverty by 30%. A roundup of available research reveals that monthly child tax credit payments have protected family finances amid the lingering pandemic, increased families’ ability to meet their basic needs, reduced child poverty and food insufficiency, and had no discernible negative effect on parental employment.

Politicians have been citing the report since it was released last week. Notably, Rep. Alexandria Ocasio-Cortez (D-NY) accused Sen. Joe Manchin (D-WV) of blocking passage of the Build Back Better bill, which would have extended the credit for another year.

“A U.S. senator ‘heard stories’ about people allegedly using the child drug tax credit ‘without any evidence or data to prove it,’ Ocasio-Cortez said in a Twitter post that shared the report. “He then used this as justification to atomize the entire national agenda, pushing millions of children into poverty within weeks. Appalling.”

Stephen Silver, technology editor for The National Interest, is a journalist, essayist and film critic, who also contributes to The Philadelphia Inquirer, Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review and connect today. Co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.

Picture: Reuters.