The Child Tax Credit Payments: Why They Should Be Made Permanent

The American Rescue Plan of 2021 has brought much-needed relief to many families in the United States, especially those with children. As part of this plan, eligible taxpayers have received up to half the 2021 Child Tax Credit (CTC) advance payments. This is an essential step towards providing financial support for families with children and should be made permanent. This has been a great help for many families who are struggling financially due to the pandemic.

The CTC is a tax benefit that provides money to support families with children. It was established in 1997 and has since been modified several times. It allows eligible parents and caregivers to claim a credit of up to $2,000 per qualifying dependent child if their modified adjusted gross income is $400,000 or below.

The Child Tax Credit is a tax break available to qualifying parents and caregivers for each of their children under the age of 17. This credit can reduce the Federal tax owed by up to $1000 per child, making it an essential source of financial relief for families. The American Rescue Plan recently increased the amount of the Child Tax Credit from $2,000 to $3,600 for qualifying children under six years old and from $2,000 to $3,000 for qualifying children aged 6-17. With this increase in the Child Tax Credit comes an increased need for paystub maker services to ensure all eligible taxpayers can take advantage of this credit.

Benefits of Making the CTC Permanent

Making the CTC permanent would provide long-term financial stability for families with children by helping them cover childcare, education expenses, and other necessities. It would also help reduce poverty levels among low-income households by providing them with additional resources to make ends meet. Additionally, it could help stimulate economic growth by encouraging more people to enter the workforce or start businesses due to increased disposable income. So, it would also help reduce poverty levels among children by providing them with more resources and opportunities for success in life. Finally, making these payments permanent would also help stimulate economic growth by putting more money back into circulation within our communities.

How Would Make the CTC Permanent Work?

However, if the CTC were made permanent, taxpayers would no longer need to file annually to receive their total credit amount; instead, they would automatically receive their payments regularly throughout the year. This would make it easier for taxpayers who may not have access to or knowledge about filing taxes each year or who may not have enough time due to work commitments or other obligations. This expanded CTC must be made permanent to ensure that children and their families can continue to benefit from it long-term.

Reason 1: Food Insecurity

Food insecurity is one of the most pressing issues facing many American families. According to Feeding America, one in six people is food insecure in the United States. This means they do not have access to enough nutritious food or cannot afford it. An expanded CTC would help alleviate this issue by providing additional monthly funds for families to purchase groceries.

Reason 2: Difficulty Making Rent and Mortgage Payments

Many Americans struggle to pay rent and mortgage due to job losses or reduced hours during the pandemic. The expanded CTC could help ease this burden by providing families with additional funds to cover their monthly housing costs. This could prevent them from falling behind on payments or becoming homeless due to an inability to pay rent or mortgage bills.

Reason 3: Income Loss

The pandemic has caused many individuals and families to suffer a significant loss of income due to job losses or reduced hours at work. The expanded CTC could help offset some of these losses by providing additional monthly funds for those who need it most. This could help keep them afloat financially until they can find new employment or increase their hours at work again.

Reason 4: Reducing Poverty Levels

 According to estimates from the Center on Budget and Policy Priorities (CBPP), making the expanded CTC permanent could reduce child poverty by about one-third nationwide. Making the Child Tax Credit permanent could profoundly affect childhood development. Every child is born with an innate curiosity and hunger for knowledge about the world around them. Still, it’s hard for many children to pursue exciting opportunities outside of what’s immediately available.

When parents don’t have the financial resources to provide their children with essential childhood experiences such as a musical instrument or a summer camp, childhood motivation can be quickly diminished. By providing a stable source of income relief from taxes, making the Child Tax Credit permanent would serve as a stepping stone for parents who want to provide their children with those kinds of childhood experiences and, in doing so, help motivate their kids during childhood for an interesting life full of exploration and discovery.

Reason 5: Improving Social Safety Net

Finally, making the expanded CTC permanent would improve our social safety net by providing a reliable source of income for those who need it most during difficult times like these when so many people are struggling financially due to job losses or reduced hours at work due to COVID-19 restrictions. This would give individuals and families more financial security, knowing they have a reliable source of income if needed during tough times like these when so many people struggle financially due to job losses or reduced hours at work due to COVID-19 restrictions.

Challenges To Making The CTC Payments Permanent

While many benefits are associated with making CTC payments permanent, some challenges must be addressed before this becomes a reality. One major challenge is finding a way to fund these payments without increasing taxes or cutting other government programs.

Another challenge is ensuring that all eligible taxpayers can access these funds equitably so that no one group receives an unfair advantage over another regarding these benefits. Finally, measures must be put in place to prevent fraud and abuse of this system so that only those who truly need it can access it without any issues or delays.

The American Rescue Plan of 2021 has provided much-needed relief for many families across America through its advance payments of up to half of the 2021 Child Tax Credit amount. Making this payment system permanent could provide long-term financial stability for these families while stimulating economic growth and reducing poverty levels among low-income households.

In conclusion, making the expanded Child Tax Credit permanent is essential for children and their families across America to continue benefiting from its long-term effects, such as reducing food insecurity, helping with rent/mortgage payments, providing income support during difficult times, reducing poverty levels overall, and improving our social safety net overall.