On June 14, 2023, the Committee on Finance held a hearing, “Anti-Poverty and Family Support Provisions in the Tax Code,” to discuss tax policies that support children and families. Chairman Ron Wyden (D-OR) gave an opening statement calling for the expansion of the 2021 Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) through the Working Families Tax Relief Act, while Ranking Member Mike Crapo (R-ID) gave an opening statement that called for incentivizing work in anti-poverty relief policies.
Testimonies were given by Amy K. Matsui; Senior Council and Director of Income Security for National Women’s Law Center, Melissa Lester; licensed social worker and member of MomRising, Dr. Bruce Meyer; McCormick Foundation Professor at the University of Chicago Harris School of Public Policy, and Grant Collins; President of Fedcap Inc. Senator Brown (D- OH), asked Ms. Lester how the predictability of knowing her family would receive the tax credit every month impact the plan for the family budget, to which Ms. Lester responded that it was a significant help in covering the costs that come up every month.
Republicans focused on concerns that CTC without work incentives causes parents to quit their jobs, while Democrats focused on the fact that CTC does not encourage parents to stop working due to the credit not equating to a salary. Research has demonstrated that the expanded CTC enacted through the American Rescue Plan Act did not negatively impact employment and may actually allow more parents to join the workforce.
By Ellison Olson, Policy Intern