Report
Top Tax Priority: Expanding the Child Tax Credit in Upcoming Economic Legislation
A robust expansion should come before corporate tax breaks that House Republicans are likely to propose.
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Policy Basics
The individual income tax and payroll tax together generate 84 percent of federal revenues, while corporate, excise, and other taxes generate the rest.
We analyze major tax proposals, examining their likely impact on the economy, on the nation’s fiscal health, and on the government’s ability to address critical national needs, especially over the long term. We also examine the impact of tax proposals on households at different income levels.
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Where Do Our Federal Tax Dollars Go?
In fiscal year 2022, the federal government is estimated to spend $5.8 trillion, amounting to 23.5 percent of the nation’s gross domestic product (GDP). Of that $5.8 trillion, over $4.8 trillion...
The Child Tax Credit
Enacted in 1997 and expanded multiple times with bipartisan support since 2001, the Child Tax Credit helps families manage the cost of raising children. Under current law the credit is worth up to...
A Call to Expand the Child Tax Credit to Reach More Hispanic Families
Hispanic Heritage Month is an annual celebration to honor the history, culture, and contributions of the Hispanic community.[1] Hispanic people make up the nation’s second largest racial or ethnic...
Tax Credit Expansions Expected to Significantly Reduce Poverty in Puerto Rico
The American Rescue Plan’s expansions of the Child Tax Credit and Earned Income Tax Credit (EITC) are expected to significantly reduce poverty in Puerto Rico. The two credits combined could provide...
American Rescue Plan Act Provides Critical, Permanent Tax Relief to Puerto Rico
The Act extends the Child Tax Credit to families of all sizes in Puerto Rico and provides funding to substantially expand Puerto Rico’s local Earned Income Tax...