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April 17, 2024

Fiscal Sanity Please, Senators

The Wyden-Smith tax bill, which combines an expanded child tax credit (CTC) with a variety of business tax breaks, has been in limbo in the Senate for the past three months. Majority Leader Chuck Schumer has promised to bring up the bill if there’s enough support, but so far, these votes have not been forthcoming…

April 9, 2024

The Child Tax Credit: My Long-Read Q&A with Kevin Corinth

The Child Tax Credit is a tax benefit available to many American families for the purpose of reducing their federal income tax liability. It’s specifically designed to help offset the cost of raising children. The CTC of today, however, differs starkly from its pre-pandemic structure. Many economists, including Kevin Corinth, think that the post-pandemic changes were a step…

January 29, 2024

Per-Child Benefit in Wyden-Smith Child Tax Credit Bill Would Discourage Full-Time Work for Families with Multiple Children

The Wyden-Smith proposed tax legislation would make four changes to the Child Tax Credit (CTC). First, it would increase the cap on the refundable portion of the CTC, eventually to the same amount as the maximum non-refundable CTC. Second, it would begin indexing the maximum non-refundable CTC with inflation. Third, it would apply a one-year lookback for…

August 14, 2023

Tracking Plans to Make Pandemic Benefit Expansions Permanent

In 2008, former White House Chief of Staff and Chicago Mayor Rahm Emanuel famously said what has come to be known as Rahm’s rule: “You never want a serious crisis to go to waste. And what I mean by that [is] it’s an opportunity to do things that you think you could not do before.” It’s clear that…

August 9, 2023

The CTC Work Incentive Works

The expiration of the American Rescue Plan Act at the end of 2021 brought with it the end of the fully refundable Child Tax Credit (CTC). The CTC has since returned to its pre-pandemic form, phasing-in at 15 percent of earnings beyond $2,500, up to a maximum of $1,600 in a refundable CTC per child…

May 4, 2023

Work Is Essential to the American Dream

Work is one of the foundations of American life. Almost always, being employed and earning income gives individuals the opportunity, responsibility, and community they need to flourish. The broader importance of work can’t be overstated. A larger workforce also contributes significantly to our general prosperity allowing us to afford, among other things, a more effective…