Slash Childhood Poverty
The Columbia University Center on Poverty & Social Policy has found that we could cut child poverty by 38% immediately. We could cut extreme poverty by 50%!
Give the Middle Class a Break
Despite stagnant wages & tight family budgets, the government estimates that it costs up to $13,000 per year to raise a child.
Provide Families More Flexibility
Childcare is expensive. Additional income would allow parents to adjust the balance between working to earn more money & the time they can afford to spend with their kids.
Help Kids Do Better in School
30% of kids living in poverty do not finish high school, trapping them in a generational cycle of future lower earnings.
Improve Kids' Health
Studies show that kids growing up in poverty are more likely to develop physical & socio-emotional problems that continue into adulthood.
Treat Every Kid Fairly
The current Child Tax Credit is based on parental income. Kids shouldn't be discriminated against if their parent can't work, can't find work, or loses his or her job.
Photo: Liz Weber/Durango Herald
What Does the Bill Do?
Increases the Child Tax Credit by 150%
Under current law, the federal Child Tax Credit is worth up to $2,000 a year per child, but it is based on a parent's income. Families claim the credit when they file their taxes. The American Family Act raises this credit 150% to $3,000 a year. The Act also increases the credit to $3,600 for children under 6.
Sends Families $250-$300 Monthly Per Child
One of the most groundbreaking aspects of the proposed bill is that it instructs the Treasury Department to set up a program to pay the credit throughout the year. That's $250 per child under 17 and $300 per child under age 6 in the bank account of American families every month. This important innovation will give parents a regular dependable amount of money to invest in the success of their children and make family budgeting much easier in times of tightening budgets and economic volatility.
Makes the Credit Available to Every Child
The American Family Act makes the enhanced Child Tax Credit fully refundable, meaning it would be available to all children, without punishing them if their parents are unable to work, can't find a job, or lose their job.