Many US parents raised their bar and launched a new business with the help of Child Tax Credit. The pandemic affected job loss among millions of parents; the government introduced CTC payments to provide fundamental monetary support to low-income families. Many struggling parents fought their financial struggle and used the relief benefits to materialize their passion and brilliant business ideas. Yahoo Money reports that 54.6 million households were eligible for the Child Tax Credit, which eased the living situation for the beneficiaries. The CTC program increased the income among the recipients and allowed several parents to widen their earning options.
Many Parents Prefer Self Employment
Yahoo Money reports that self-employed families below $50,000 annually increased from 13.4% to 16.3%. The report states that nearly 300,000 CTC beneficiaries quit their jobs and became self-employed. Yahoo Money quoted Stephen Roll, research assistant professor at Washington University’s Brown School, who said, “Some policymakers and researchers worry that providing families an extra $250 to $300 a month for every child will discourage the parents from working. Our research shows that over the first five months of CTC payments, employment did not decline in any notable way among parents who were eligible for the credit; this strongly indicates that parents continued to work even as they received the CTC payments.”
Middle-Income Households Benefitted The Most
The reports suggest that many low-income families used the Child Tax Credit on food, clothing, and Shelter. However, around 16% of the households only spent a part of CTC on child care and education. The federal government announced benefits for the families which struggled the worst during the pandemic. Yahoo Money reports that the federal benefits mostly helped middle-income families. “Families who are concerned that they may not be able to put food on the table may not feel like they can take the risks of being an entrepreneur without also putting their family at risk of hardship. By helping ensure that families can afford the essentials, the CTC may also be helping parents pursue jobs or entrepreneurial opportunities that work better for them.” The federal government has decided against extending the relief packages as the situation gets better.