Child poverty and the Child Tax Credit
This piece published (and updated to reflect new data) in The Conversation confirms that the national 2021 child poverty level reached a record-low, based on data released earlier this week. According to a U.S. Census release, “The SPM [Supplemental Poverty Measure] child poverty rate fell 46 percent in 2021, from 9.7 percent in 2020 to 5.2 percent in 2021, a 4.5 percentage-point decline. This is the lowest SPM child poverty rate on record. In 2021, SPM rates for non-Hispanic White (2.7 percent), Black (8.1 percent), and Hispanic (8.4 percent) children were also the lowest rates on record, falling from 2020.” Despite these decreases, it’s worth noting that overall income inequality increased at the same time.
One key driver of lowering the child poverty rate is the Child Tax Credit, which was expanded in 2021 but expired by the year’s end due to Congressional inaction. Democrats may make one last push for the CTC this year, as Axios describes here.
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