Urges President and Congress to enact legislation permanently reinstating federal child tax credit as provided for in tax year 2021.
The resolution addresses the significant financial burden that families face when raising children, estimating that the cost can reach approximately $20,813 annually per child. In New Jersey, families experience even higher expenses due to elevated childcare, food, and housing costs. Historically, the expanded child tax credit in 2021 was effective in reducing the child poverty rate significantly, suggesting that reinstating it could provide similar benefits and alleviate economic pressures on families.
Assembly Resolution No. 202 urges the President and Congress of the United States to enact legislation that would permanently reinstate the federal child income tax credit as provided for in tax year 2021. The resolution advocates for a credit system that allows eligible taxpayers to claim $3,000 for each qualifying child under 17 and $3,600 for children under age six, thereby enhancing financial support for families facing increasing living costs.
In recognition of the evolving economic landscape and the increasing expenses families encounter, AR202 encourages decisive action from congressional leaders to retain adequate financial support for families, projecting a commitment to combating child poverty and enhancing family financial stability. The bipartisan willingness to convene discussions on this matter demonstrates an acknowledgment of its importance, although actual legislation remains uncertain pending detailed negotiations.
Despite the evident benefits that came from the temporary increase in the child tax credit during 2021, legislative efforts to permanently restore these credit amounts face hurdles. There is ongoing debate in Congress around the terms of reinstatement, especially concerning the potential imposition of work requirements and the overall cost of the program. This impasse suggests a challenging path ahead for the proposed legislation as lawmakers seek to reach a consensus on necessary adjustments.