Expanding the Child Tax Credit could lift 3 million people out of poverty

Researchers at the Center on Budget and Policy Priorities identify expanding the Child Tax Credit (CTC) and the Earned Income Tax Credit (EITC) as a potential economic stimulus. Currently, many low-income families do not earn the full $2,000 CTC per child because their incomes are too low. The authors estimate that temporarily making this tax credit fully available would lift 3 million people above the poverty line. This poverty-alleviating measure would also be an effective economic stimulus as low-income families tend to spend this money quickly. Another strategy, rather than full expansion, would be to allow 2020 tax filers to use either their 2019 or 2020 income to calculate their CTC and EITC, as many will have drastically reduced earnings in 2020 due to pandemic-related job losses. #covid-19 #workforce