The Child Tax Credit is a Winning Pro-Family Policy

Federal CTC

10. 01. 2024

The Child Tax Credit is a key policy to help families tackle the affordability crisis.

See the difference the Child Tax Credit makes

2024 Campaign Videos

Polling: Voters prefer candidates with strong stances on the Child Tax Credit and tax fairness

Explore polling by Open Labs and Blue Rose Research

Swing State Focus Groups: Raising taxes on the wealthy and big corporations resonates

New report from Navigator Research

Polling: 69% of Registered Voters Support the Child Tax Credit

Would voters support a bipartisan proposal in Congress?

National and State Impact Fact Sheets

See the impact the CTC makes in your states

Candidates should champion key economic policies that have proven effective and popular with voters. These include shifting power from corporations to workers, consumers, and families by eliminating abuses such as junk fees, supporting the FTC’s defense of the Noncompete Rule, and promoting public investment in vital services like childcare. They should also advocate for fairer tax policies, such as raising taxes on billionaires, reinstating the expanded Child Tax Credit (CTC) and Earned Income Tax Credit (EITC), and expanding free tax filing options nationwide.

The expanded CTC, in place during 2021, lifted nearly 4 million children out of poverty and benefited 90% of children in the country. However, under current law, millions are excluded from the full credit because their parents earn too little. Studies show that the CTC had no negative employment impacts and, in many cases, helped parents work more by covering essential expenses. The CTC was especially beneficial for low-income families and families of color, yet its expiration has caused 3.7 million children to fall back into poverty.

Reinstating the CTC is crucial to preventing more increases in child poverty and stimulating economic growth. During its implementation, the CTC generated nearly $20 billion in monthly economic activity, and economists argue that it poses no inflation risk. Moreover, restoring the expanded CTC would particularly benefit rural families, who received more in CTC payments relative to their urban counterparts, but who now face greater exclusion from the full credit due to its expiration.

An expanded Child Tax Credit disproportionately benefits state and local economies, especially in rural areas where 32% of children are currently excluded from the full credit compared to 26% of children in metro areas. Over 200 economists agree that the expanded CTC, though modest in cost, is a powerful tool to help families manage rising costs without driving inflation.