nydailynews.com nydailynews.com 22 Dec, 2020 10:45 am

Investing in kids pays real dividends

Investing in kids pays real dividends
A weary America is suffering through the worst public health crisis in more than a century. COVID-19 has taken over 300,000 lives. Parts of the economy have effectively shut down, throwing millions out of work and bankrupting businesses large and small. In the richest country in the world, Thanksgiving dinner for tens of thousands came from food banks at the end of traffic jams stretching for miles.

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.

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