Newly proposed child tax credit could benefit families
According to the Urban Institute, four out of every 10 parents with a child under the age of six lost their job or income within the first six months of the pandemic.
Several Democratic and Republican lawmakers now want to increase the child tax credit that families with children receive every year after filing their income taxes from $2,000 per qualifying child to $3,600 per child under the age of six per year.
The proposed update also includes a tax credit of $3,000 per year for children under the age of 17.
Married parents earning less than $150,000 and single parents earning less than $75,000 would qualify.
"There has been previous research that's shown that $3,000 increase in the income of a parent is associated with or affiliated with a 19 percent increase in earnings when that child is an adult," said Alexandra Cawthorne Gaines, an analyst for the Center for American Progress said.
The proposal is one part of President Biden’s $1.9 trillion stimulus package – which still needs to be discussed in congressional committees.