Do you agree with this or not?
While most of the tax drama these days is focused on the fate of 50+ mostly-business tax breaks that expired nearly a year ago, lawmakers are also debating two provisions that are enormously important to low- and moderate-income households-the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC). Temporary measures increasing those tax benefits for many of these households are set to expire after 2017. Congress should make them permanent now.
The pieces of the CTC and EITC in play are relatively inexpensive ways to promote work and family. The CTC provision is particularly well targeted to low-income households and EITC benefits flow to low- and middle-income households. Combined, the two refundable credits reduced the poverty rate from 19 percent to 16 percent in 2012 (using a supplemental poverty measure that includes taxes and transfers). That’s a big impact – and we should not chip away at it.
Both refundable credits were made more generous—but only temporarily—in the 2009 stimulus law. The 2013 fiscal cliff deal continued the expansion through 2017.
Why the More Generous Child and Earned Income Tax Credits Should Be Made Permanent