SPONSORED CONTENT -- (StatePoint) Greater income allows parents to better meet children’s basic needs, and financial stability can reduce parental stress. Advocates say that child tax credits (CTCs) provide one avenue for states to increase family resources and are encouraged by progress being made by Washington, D.C. and states around the country.
Studies show that credits like child tax credits have big benefits for families and are linked to improvements in child and maternal health outcomes as well as reduced hunger and poverty. CTCs, which have bipartisan support, help families cover essentials like food, clothing, childcare and transportation. These initiatives -- in many cases made in response to the expiration of the expanded federal Child Tax Credit in 2021 -- aim to ease rising costs and improve economic security. Drawing lessons from the federal program, states are implementing practical solutions to help keep families afloat.
“Tax policy is a powerful tool to support and improve childhood outcomes, community well-being, and state economies,” says Amber Wallin, executive director of the State Revenue Alliance. “In fact, refundable tax credits that are focused on families, like a child tax credit, are the most effective public policy for reducing childhood poverty. And by putting money in the pockets of families who will spend it quickly and locally, child-focused tax credits benefit businesses and the economy too.”
Josh McCabe, director of social policy at the Niskanen Center, notes that CTCs are especially effective at boosting family income, and provide an alternative to traditional social assistance programs like Temporary Assistance for Needy Families.
“The nation’s capital follows several states that created wholly new credits, however, other states have converted existing tax benefits into more modest credits at a lower cost, demonstrating that these programs can help families avoid poverty while remaining affordable to state budgets,” says McCabe.
To learn more about policies that support babies, toddlers and their families, visit the National Collaborative for Infants & Toddlers website at ncit.org.
States instituting or expanding their own CTCs are helping fill the gap for parents, allowing more infants, toddlers and families to thrive.
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