PRESS RELEASE: ADDING CHILD TAX CREDIT TO COVID RELIEF PACKAGE COULD CUT DEEP POVERTY BY HALF, HELP ECONOMY RECOVER

FOR IMMEDIATE RELEASE
February 8, 2021

Contact:
Maddy McDaniel, Communications Director

[email protected]

ADDING CHILD TAX CREDIT TO COVID RELIEF PACKAGE COULD CUT DEEP POVERTY BY HALF, HELP ECONOMY RECOVER

The Proposed Tax Credit Of Up To $3,600 A Year Could Reduce Deep Poverty By Half

WASHINGTON, D.C. —  Today, Congressman Richard Neal (D-MA-1) introduced legislation to supplement the American Rescue Plan that would provide as much as $3,600 in aid per child to millions of American families. Analysis shows that the legislation would significantly reduce child poverty and would aid families working hard to regain their footing during the Covid pandemic.

“This coronavirus crisis is an emergency and it’s having a devastating impact on families with kids,” said Zac Petkanas, senior advisor to Invest in America. “This legislation would help address the fact that in the richest country in the world, one in four children faced food insecurity. This kind of public investment in the Covid relief package would serve as a crucial first step toward giving all children families the support they need to get back on their feet.”

The United States has one of the highest rates of child poverty in the developed world. Today’s proposed child tax credit, which mirrors a provision in President Biden’s proposed American Rescue Plan, has the potential to:

  • Provide credit for 27 million children whose families do not currently receive full credit because their parents don’t earn enough. That includes about half of all Black and Latino children, whose communities have been disproportionately affected by the Covid pandemic. 

  • Lift million people above the poverty line, 10 million children above or closer to the poverty line, and 770,000 children out of deep poverty.

About Invest in America

Invest In America is a national rapid response operation advocating for robust public investment to rescue the economy from the COVID crisis and create prosperity for the future, and to fight back against fear-mongers who use deficit concerns as a scapegoat to starve American communities and businesses of resources.

The operation consists of two components: Invest in America, the charitable and public education arm, which is a fiscally sponsored project of Economic Security Project funded by the William and Flora Hewlett Foundation and Economic Security Project co-chair Chris Hughes; and Invest in America Action, the advocacy and social welfare arm, which is a fiscally sponsored project of Economic Security Project Action funded by Chris Hughes and the Omidyar Network.

Learn more at InvestInAmericaNow.com and @InvestNowUSA, and InvestinAmericaProject.com.

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