The cessation of Child Tax Credit payments has had detrimental effects on individuals’ livelihood. The study shows that 3.7 million children have fallen back into poverty this year. The families haven’t received the Child Tax Credit for two months now; the credit expired in December last year.
NPR reports that the child poverty rate in the country has increased from 12.1% to 17%, the highest since 2020. The Black and Latino children are the significant contributors to d poverty, with 5.9% and 7.1%, respectively. The university’s Center on Poverty and Social Policy has released the recent data.
Child Tax Credit Was Of Great Help
The enhanced Child Tax Credit program helped low-income families significantly. The US federal government introduced the Child Tax Credit in the latter half of 2021. The families within the annual income threshold received six-monthly checks worth $250 to $300 per child; the payments allowed them to spend more on child care and their basic living expenses, including food and shelter. The end of the benefits program will give the children from low-income families a hard time. The economists predicted further financial downfall and an increase in the poverty rates.
Further CTC Payments Are Not Likely
The congrees is unlikely to provide another federal benefit; the cries for help have fallen on deaf ears. The recent rise in inflation has made the situation worse. The IRS had issued the first half of the CTC payments. The second half is due when IRS gives the tax refunds for 2021. The taxpayers need to file the returns before the deadline to receive the eligible benefits. The struggling parents need to find a way to meet their basic expenses and pay for their children’s education. The experts predict higher inflation levels this year will deteriorate the living standards.
Several reports show that several families have not been able to get a full meal since the benefits ended. The countrywide circumstances are getting worse day by day. The government is not considering introducing new benefits as they will negatively influence the economy. However, the families need help, and the government needs to provide it soon.