With Joe Manchin thwarting the Build Back Better bill on the national level, some lawmakers have turned their focus to state safety nets for vulnerable kids
That’s a blow to families who have become accustomed to the additional $250 to $300 each month provided by the expanded CTC, particularly those operating on limited incomes. Octobershowed 35 million families in the U.S. receive the new monthly Child Tax Credit payments, with many using those dollars for school supplies and child care. And skyrocketing cases of the COVID-19 Omicron variant will likely add to Americans’ economic uncertainty.
While these state-level tax credits can’t offset the loss of the federal expansion, proponents of state-level programs argue they are better than nothing. Headed into Connecticut’s 2022 legislative session, Scanlon says enacting a state-level child tax credit will be his top priority, since the federal expansion is now far from guaranteed.
“State lawmakers… do not need to wait for congressional action to make major strides in lifting thousands to millions of children within their states out of poverty,” the report read. “Trying to make up the difference with the expiration of the American Rescue Plan Act expansion of the Child Tax Credit would be almost impossible for most, if not all states,” Walczak told The Daily Beast. Connecticut, for instance, can’t compete with the value of the federal CTC expansion “simply because Connecticut’s income tax is only a fraction of the size of the federal income tax,” he added.
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