Resolution 250080

..Title Urging Congress to expand the Child Tax Credit, an essential anti-poverty initiative that has drastically cut child poverty and benefitted millions of families. ..Body WHEREAS, The Child Tax Credit is a critical tool that effectively improves the economic security of millions of lower-to-moderate income families with children. It is estimated that the federal Child Tax Credit lifts nearly 2 million children out of poverty each year; and WHEREAS, Child poverty is a tragedy that affects millions of children throughout the United States. Children who live in poverty often experience homelessness, food insecurity, and other hardships that are detrimental to their well-being, education, and health. These devastating impacts further heighten the necessity of better positioning the next generation of children for success; and WHEREAS, The federal Child Tax Credit was established with bipartisan support as a part of the 1997 Taxpayer Relief Act. Eligible recipients receive the credit when they file for their taxes by subtracting the credit they will receive from the total amount of their federal taxes owed. The amount of the credit has increased over time, and eligibility parameters have expanded to align with the federal Earned Income Tax Credit, another essential anti-poverty initiative; and WHEREAS, The Child Tax Credit provides a credit of up to $2,000 per child under age 17. If the credit exceeds taxes owed, families may receive up $1,700 per child as a refund; and WHEREAS, The American Rescue Plan Act (ARPA) of 2021 temporarily expanded the Child Tax Credit for the 2021 tax year to $3,600 per child younger than age 6 and $3,000 per child ages 6 to 17 and WHEREAS, The 2021 temporary increase of the credit had a significant impact in reducing childhood poverty. Child poverty in the United States dropped to 5.2%, the lowest rate ever recorded, as a result of federal recovery policies, and in particular, the expanded Child Tax Credit. As a result, child poverty was cut nearly in half; and WHEREAS, In total, the Child Tax Credit lifted 2.9 million children out of poverty in 2021, with 1 million of them under the age of 6. The expanded Child Tax Credit also reduced inequities, cutting child poverty among Black and Hispanic children by 6.3 percentage points, representing 716,000 Black children and 1.2 million Hispanic children. The Child Tax Credit also lifted 820,000 White, non-Hispanic children and 110,000 Asian children out of poverty; and WHEREAS, In the 2022 tax year, the federal Child Tax Credit reverted to the previous level of $2,000 per child. As a result, the child poverty rate increased to 13.7%. This drastic shift represents the proven impact of the tax credit and the negative effect reducing it would have on millions of children; and WHEREAS, After 2025, the Child Tax Credit is scheduled to drop back down again to $1,000 per child. Since the 2021 ARPA expansion, efforts to expand the credit have not been successful in Congress, despite proposals from multiple elected leaders and candidates; and WHEREAS, The Expanded Child Tax Credit is a proven method to reduce child poverty and if enacted, would mark the beginning of a much-needed reversal of the sharp rise in child poverty that occurred in 2022; now, therefore, be it RESOLVED, BY THE COUNCIL OF THE CITY OF PHILADELPHIA, That it hereby urges Congress to expand the Child Tax Credit, an essential anti-poverty initiative that has drastically cut child poverty and benefitted millions of families. ..End