NJPP REPORT: How an expanded child tax credit would help more hard-working families in New Jersey
REPORT: How an expanded child tax credit would help more hard-working families in New Jersey
For immediate release
January 31, 2023 — As payments for New Jersey’s first Child Tax Credit hit the mailboxes as early as this month, a new report from New Jersey Policy Perspective (NJPP) reveals that expanding the program would help more families to cope with rising costs, reduce child poverty and reach hundreds of thousands more children.
The report, How An Expanded Child Tax Credit Would Help More Hard-Working New Jersey Families, analyzes proposed expansions for the new state-level child tax credit: one to include children up to age age 12, and another that increases the maximum amount of the credit from $500 to $1,000 for children under age 6. The expanded tax credit would benefit 441,000 New Jersey families, according to the report, including 713,000 children in households receiving the tax credit. Families would receive an average benefit of $567.
“Providing direct help to the families who need it most is one of the best investments a state can make, and that’s exactly how we’re making New Jersey the best place in the country to raise a child.” said Peter Chen, senior policy analyst at NJPP and author of the report. “Increasing the maximum credit will help families with young children cope with rising costs, while expanding the age of eligibility means more families will benefit.” We know the costs of raising children don’t stop when they turn six, and the child tax credit should reflect that. »
The extensions analyzed in the report would be based on a proven bipartisan policy in directly helping families struggling with high costs of basic needs. The original child tax credit was passed in June 2022 by a vote of 31 to 6 in the Senate and 72 to 2 in the Assembly.
The report notes that programs such as the Child Tax Credit have a “multiplier effect” because families often spend the credit immediately and locally, which stimulates the economy at large.
“Given the high costs associated with poverty, we all benefit when families have the resources they need to pay for basic necessities like housing, groceries and child care,” the author said. of the report, Peter Chen. “What’s best for children and families is what’s best for the economy overall.”
Read the full report here.
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New Jersey Policy Perspective (NJPP) is a nonpartisan think tank that promotes policy change to advance economic, social, and racial justice through independent, evidence-based research, analysis, and advocacy.
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