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If Democrats hadn’t spoken up, beneficiaries of the Child Tax Credit (CTC) and the Earned Income Tax Credit (EITC) would have taken a huge hit in the coming year.To take just one example, “A single mother with two children whose earnings fall from $15,000 in 2019 to $5,000 in 2020 [would have seen] her EITC fall from $5,920 to $2,010 and her Child Tax Credit fall from $1,875 to $375.President-elect Biden’s campaign tax plan included a proposal to make child care more affordable by upping the Child and Dependent Care Tax Credit.To tax expert and author Len Burman, the idea is a fiscal no-brainer: “Instead of supply-side tax policy, try child-side tax policy.
” Numerous bills taking that direction are already on the Democratic agenda—so numerous that the Tax Policy Center collected them in a 22-page summary with the daunting title “Understanding the Maze of Recent Child and Work Incentive Proposals.The lesson it holds for legislators is simple and powerful: Public monies should go where they deliver the highest return, to families on the lower end of the income scale.