Problem
Some policymakers have considered adopting a per-child phase-in of the child tax credit (CTC), which would phase in the refundable portion of the CTC at a rate of 15 percent times the number of dependent children. For example, the phase-in rate in the refundable portion of the CTC for a family with three dependent children would be 45 percent.
Solution
While this provision would strengthen some parents’ incentive to work at least some amount, it would substantially weaken their incentive to move into full-time work and get married. It would also be costly. Policymakers should not adopt this provision and should focus on reducing deficits instead.
Date of Proposal : October 18, 2024
Kevin Corinth, “Pro-Marriage Conservatives Should Reject a Per-Child Phase-In of the Child Tax Credit,” AEIdeas, October 18, 2024, Read more.
Kevin Corinth and Scott Winship, “Per-Child Benefit in Wyden-Smith Child Tax Credit Bill Would Discourage Full-Time Work for Families with Multiple Children,” AEIdeas, January 29, 2024, Read more
Kevin Corinth et al., “Options for Improving the Child Tax Credit Provisions in H.R. 7024, the Tax Relief for American Families and Workers Act of 2024,” COSM Commentary, February 27, 2024, Read more.
Kevin Corinth, “Let’s Not Turn the Child Tax Credit into Welfare,” The Dispatch, January 29, 2024, Read more.