An unexpected tax bill will now help over 400K children in more low-income households, per a new relief package for 2024.
A new tax package has made its way through Congress, with some Democrats and Republicans reaching a surprise agreement at the start of the election year for a legislative body that’s had its issues.
If this bill passes, the deal could help to fulfill one of President Joe Biden’s promises.
The Child Tax Credit would expand to more low-income families, and Republicans would get to revive three expired tax breaks for businesses.
This bill carries a $78 billion total price tag.
The package would expand the Child Tax Credit through the tax year for 2025 for an estimated $33 billion.
The Child Tax Credit was expanded significantly under Biden in the 2021 American Rescue Plan, which led to a “historic” reduction in child poverty in the U.S., but the popular measure expired at the end of that year.
Then, those gains were reversed, and child poverty soared, more than doubling from 4 million in 2021 to 9 million in 2022, according to the United States Census Bureau.
The poorest families, which qualified for $3,600 per child payments under the expanded credit, received $0 when by the time the tax credit expired.
While the new legislation isn’t as generous as 2021’s, significant changes to the Child Tax Credit are paramount.
The new Child Tax Credit would increase the credit amount for about 16 million children, according to the Center on Budget and Policy Priorities.
One of the biggest changes is increasing the maximum credit per child from $1,600 to $2,000 by 2025.
This new tax bill has the potential to save 400,000 kids from living in poverty just in the first year, per the report from The Center on Budget and Policy Priorities, and a whopping 500,000 by the year 2025.
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Also Read: SNAP Benefits Will Now Increase For The Year 2024
Other Economy News Today
More Americans now become homeless due to the surge in rent, reports Harvard’s Joint Center for Housing Studies.
A whopping 653,000 people reported experiencing homelessness in January of 2023, up roughly 12% from the same time a year prior and 48% from 2015, according to CNBC.
That marks the largest single-year increase in the country’s unhoused population on record, Harvard researchers said.
Homelessness is a much bigger problem in states such as California and Washington, which has also increased in historically more affordable parts of the country.
Arizona, Ohio, Tennessee, and Texas have seen the largest growths in their unsheltered populations due to rising local housing costs.
The American people are struggling to keep a roof over their heads due to inflation in 2021 and 2022 and a surging rental market across the U.S. outpaced worker salaries.
There are several factors that have caused homelessness.
Researchers found that surging rents and the expiration of pandemic relief last year contributed to the spike in housing insecurity.
Furthermore, there’s been a massive trend of tech companies and financial institutions nationwide laying off their workforce.
“In the first years of the pandemic, renter protections, income supports, and housing assistance helped decrease a considerable rise in homelessness.
These protections ended in 2022, at a time when rents were rising rapidly and increasing numbers of migrants were prohibited from working.
Currently, the number of people experiencing homelessness jumped to 71,000 in just one year,” said a recent report from the United States Census.
What are your thoughts on the current ‘rent crisis’ many American are feeling right now?
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Also Read: A Massive US Bank is Now Closing Credit Cards
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