DeLauro Introduces Young Child Tax Credit Act
WASHINGTON, DC (March 3, 2016) — Congresswoman Rosa DeLauro (CT-03) today introduced the Young Child Tax Credit Act with House Democratic Leader Nancy Pelosi and House Ways and Means Committee Ranking Member Sander Levin. The bill would provide families with an additional $1,500 refundable tax credit for each child under the age of 3 years old. Young children, including babies and toddlers, are the poorest people in the country by age and the Young Child Tax Credit would serve to give families an economic lift during a child’s critical development years.
“The Young Child Tax Credit will help millions of families across the United States who are striving to provide the best possible future for their children,” said Congresswoman Rosa DeLauro (CT-03). “The greatest economic challenge facing our country today is that Americans are working in jobs that just do not pay them enough, but we must do everything we can to ensure that families have the resources to succeed. Providing an economic boost to parents at a critical time in their child’s life has the potential to positively impact a child’s health, education, and future.”
“The three most important issues facing Congress are our children, our children, our children,” said House Democratic Leader Nancy Pelosi. “The Young Child Tax Credit will put more money in the pockets of young families and help parents provide a strong foundation for their children at a time they need it most. When working families succeed, our country succeeds – and families could not have a more relentless champion than Congresswoman Rosa DeLauro.”
“Experts agree that the earliest years in a child’s life are the most formative so it is crucial that during this time we do all we can to help set our kids on a path to succeed. And the Young Child Tax Credit is an important tool in providing stability for families and putting children on that path,” said House Ways and Means Committee Ranking Member Sander Levin (MI-09). “Congress needs to work together to provide greater economic opportunities and support to help lift Americans out of poverty, and this bill would make a positive difference in the lives of millions of our children across the country.”
“Harnessing the Child Tax Credit as a tool to invest in the next generation will help millions of families meet their children’s immediate needs while also providing greater economic stability. I applaud Rep. DeLauro for her leadership on behalf of working families and urge Congress to swiftly pass this important legislation,” said Neera Tanden, President and CEO of the Center for American Progress.
With the recent improvements signed into law in December, together, the Child Tax Credit and Earned Income Tax Credit now lift more children out of poverty than any other federal policies. However, each year, child poverty continues to cost the national economy more than $670 billion, which amounts to 4 percent of the U.S. gross domestic product.
Economists have found a correlation between income levels in the earliest years of a child’s life and school achievement, which can impact a child long into adulthood. Children born to millennial parents now make up 80 percent of the 4 million births in the U.S. annually, and 1 in 5 millennial parents live in poverty. With the Young Child Tax Credit, families, including those with millennial parents, will receive a raise in income during a time when family income matters the most to a child’s long term development.
The Young Child Tax Credit would operate as a refundable tax credit with no minimum income threshold for families to clear in order to be eligible. Low-income families frequently are not eligible for tax credits because of an income threshold, a detrimental factor in attempting to alleviate poverty.