Poverty

Child Tax Credit

Question A: A state version of the 2021 expansion of the child tax credit would reduce child poverty substantially.

Question B: The costs of increasing resources for low-income families via a state child tax credit would be offset over the long term by the fiscal benefits of improving life outcomes for children no longer growing up in poverty.

Question C: Parental labor supply would be likely to fall significantly following introduction of an expanded child tax credit.