Senators Booker, Brown, Bennet and Rev. Warnock Unveil New Report Detailing Transformative Impact of Tax Credit Expansions in American Rescue Plan

 

Senators Booker, Brown, Bennet and Rev. Warnock Unveil New Report Detailing Transformative Impact of Tax Credit Expansions in American Rescue Plan

 Nearly 10 million children will be lifted above or closer to the of poverty line due to expansion of Child Tax Credit and Earned Income Tax Credit, cutting the number of kids living in poverty by more than 40 percent  

Report includes data on state-by-state impact of ARP’s tax credit expansions

  

 

WASHINGTON, D.C. — Today, U.S. Senator Cory Booker (D-NJ), Vice Chair of the Democratic Policy and Communications Committee (DPCC), along with Senators Sherrod Brown (D-OH), Michael Bennet (D-CO), and Reverend Raphael Warnock (D-GA) unveiled a new DPCC report that includes new data on the transformative impact of expanding the Child Tax Credit, the Earned Income Tax Credit, and the Child and Dependent Care Tax Credit as a part of the American Rescue Plan.

According to the new report, expanding the Child Tax Credit, the Earned Income Tax Credit, and the Child and Dependent Care Tax Credit will help transform the lives of millions of Americans. Specifically, the report shows that these provisions of the American Rescue Plan would collectively lift nearly 10 million children above or closer to the poverty line – including 2.3 million Black children, 4.1 million Latino children, and 441,000 Asian-American children. According to the Center on Budget and Policy Priorities, these changes would cut the remaining number of children in poverty by more than 40 percent.

Additionally, the provisions will also increase income for nearly 17 million childless adults.

The DPCC report also includes new data compiled by the Center on Budget and Policy Priorities on the state-by-state impact of the tax credit expansions. Click here to download the full report.

“Our country is facing an economic crisis unlike anything we have seen in our lifetimes,” said Senator Booker. “Tens of millions of Americans, especially low-income communities and communities of color, are facing food insecurity and slipping deeper and deeper into the trap of poverty and debt because of this dual public health and economic crisis. An expanded Child Tax Credit and expanded EITC as a part of the American Rescue Plan aren’t just common sense policies that will set us up for a stronger long-term economic recovery, they will be lifelines for families and people who are struggling right now and need help.”

“Even before this pandemic, hard work wasn’t paying off for millions of workers,” said Senator Brown. “Wages have been flat for decades, while the cost of everything is up – particularly the cost of raising kids. After a year of being told their government can’t help them, Americans across the political spectrum, in all kinds of communities around the country, want us to go big and pass the American Rescue Plan. The EITC and CTC are a big part of that effort – these tax credits are two of the most effective tools to put money in the pockets of working people and pull children out of poverty. This plan will help deliver real, tangible results that make a difference in people’s lives.”

“We are on the verge of doing more to eradicate child poverty than we have in generations,” said Senator Bennet. “Expanding these tax credits would boost incomes for nearly 300,000 workers in Colorado and benefit over one million kids statewide. This can’t come soon enough, and I’m going to do everything I can to get this over the finish line and then make these changes permanent going forward.”

“Georgia voters voted for a bold response to this pandemic, and strengthening crucial federal investments for families helps us get as much direct relief to as many Georgians as possible—to buy food and diapers, pay for child care, purchase critical prescriptions and so much more. By increasing Georgians’ purchasing power through expanding the Earned Income Tax Credit and Child Tax Credit, we can put necessary resources right in people’s pockets that will also help stimulate local economies and the state economy as a whole,” said Senator Warnock. “These federal investments are the economically and morally sound options Congress can take to help hardworking Georgians weather the unprecedented challenges posed by the COVID-19 pandemic.”

Senators Booker, Brown, and Bennet have worked extensively on expanding tax credits for working and middle class families. In 2019, all three Senators introduced the American Families Act and the  Working Families Tax Relief Act that would permanently expand the Child Tax Credit and the Earned Income Tax Credit for children and low-income families.

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