Democrats Can Tweak Their Child Allowance to Help Families More - Jason Furman

December 17, 2021, Opinion: "One of the most important policies in President Biden’s Build Back Better bill is the expanded child tax credit. Congress shouldn’t shelve it, but should instead make changes to ensure that the credit is better targeted, lasts longer and is more focused on reducing poverty.  Most other advanced economies have child benefits—a flat amount given monthly to support parents with children. It is the least bureaucratic, least intrusive and most efficient way to support families and children. But the U.S. child tax credit has left out some of the families who need it most: those who don’t earn enough to qualify. Congress passed temporary changes to the credit earlier this year, increasing the size of the credit, paying out part of it in monthly checks, and allowing those without income to receive the benefit. But these changes expire at the end of the year."

HKS Author - Jason Furman