SPRINGFIELD, Ill. - Congress soon will break for the holidays, but there's still a big issue on the table whether or not to make permanent or even just extend parts of the Earned Income Tax Credit and the Child Tax Credit.
Child welfare advocates, such as David Lloyd, director of the Fiscal Policy Center with Voices for Illinois Children, say these credits help about 900,000 Illinois children. But the credits are slated to expire in 2017.
"It's really critical that Congress, when they're thinking about putting in extensions for business tax credits, that they also take care of children and families," says Lloyd.
Last week a group of House Republicans laid out their tax credit priorities, which includes letting the CTC expire unless there are "significant improvements to the programs." But both tax credits have a long history of bipartisan support.
The EITC was enacted by Republican President Gerald Ford in 1975, and later expanded by President Ronald Reagan.
Lloyd is hopeful that lawmakers will extend the credits during their upcoming talks. But he points to numbers from the left-leaning Center on Budget and Policy Priorities (CBPP) that show about 322,000 children could end up "pushed into or deeper into poverty."
"The kids who receive the Earned Income Tax Credit make more as adults," says Lloyd. "Even, you see less incarceration. All sorts of positive benefits, much of which we'll lose if provisions to these credits expire."
Ralph Martire, executive director of the Chicago-based Center for Tax and Budget Accountability, says the credits have had support from both sides of the political aisle because it's an economic driver for low-income families.
"Every additional dollar they get, whether it's in direct income or, in this case, through a tax credit, they spend in their local community," says Martire. "So, that then becomes the income of the dry cleaner or the grocery store."
Still, some House Republicans say many people are abusing the tax credits with fraudulent claims. Congress may decide on the tax extenders before lawmakers adjourn for the holidays on Dec. 18.
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A bill in Congress with a Connecticut House sponsor aims to reduce child labor in the United States.
Called the "Children Harmed in Life-Threatening or Dangerous Labor Act," its aim is to strengthen current child labor laws and increase civil penalties for companies violating them. And the bill puts a new wrinkle on protections: It allows the Secretary of Labor to label goods produced with child labor, and to issue a 'stop work' order for any person violating child labor laws.
Rep. Rosa DeLauro, D-Conn., the bill's House sponsor, described its importance.
"This is in response to industry, to have more workers -- more than likely who are underpaid -- and that they can get cheap labor for doing the jobs that they are doing, and taking risks with children," DeLauro explained. "There is a labor shortage, so they're looking to children."
The Economic Policy Institute reported 10 states introduced or passed bills rolling back child labor protections in the last two years.
The Labor Department's Wage and Hour Division concluded almost 1,000 investigations, uncovering child labor violations, an 88% increase since 2019. The bill has been introduced in both chambers of Congress.
Ultimately, the goal is to have stiffer penalties in place for companies that ignore child labor laws. DeLauro acknowledged backers of the bill expect some opposition, most likely from states rolling back protections and industries using underage workers.
"We've got a very strong meat packing industry -- I mention Tyson, JBS, Turkey Valley Farms -- and Packers Sanitation Services provides cleaning services at these meat processing facilities," DeLauro outlined. "I'm going to anticipate that we're going to see industry come out of the woodwork in opposition."
Some companies are already being held accountable with civil penalties. A meatpacking plant owned by Tennessee-based Monogram Meats Snacks was fined a little more than $140,000 for employing children. However, the company made more than $1 billion in 2021.
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When a Texas woman began her six-year journey to adopt, she hoped to affect one child's life.
Felicia Lewis, an adoptive parent, is now making a difference in the lives of three young sisters. After considering adoption for years, Lewis and her partner Ruth were introduced to the three girls, all recently displaced from their birth parents.
She encouraged those considering adoption to "get involved to change a life and see how it impacts yours."
"These are children, and it's really important because you're going to be shaping their future, shaping their minds, shaping how they view the world," Lewis pointed out. "It is critical that people are just invested in it."
November is National Adoption Month. Lewis works for Bank of America, ranked among the "Top 100 Best Adoption Friendly Workplaces" by the Dave Thomas Foundation for Adoption. The connection helped pay the adoption legal fees through Bank of America's Family Planning Reimbursement program.
Over several years, Lewis and her partner built a deep connection to the children and finally saw their petition to foster with the intention to adopt granted in 2020. The process was finalized in August. Lewis noted she received an outpouring of support and encouragement from work colleagues to adopt her three daughters, now ages 6, 8 and 9.
"We walked into this thinking that we were helping them," Lewis recounted. "We're going to give them a better life, a better future, a better home, etc. And we certainly did all that, but they gave us such a better perspective on being better human beings."
Lewis added those considering adoption should not take it lightly, because it is an intense process.
"Agencies, the government, etc., they want to make sure the children are going to a safe home; that they're going to a place they can be cared for," Lewis emphasized. "There's a process, so just be patient, and know that it may not happen overnight, and you might have to try, try and try again. But in the end, it is so well worth it."
The average paid leave given to adoptive parents is 9 weeks - up from 8.4 weeks last year.
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Lawmakers in Congress are facing mounting pressure from corporate lobbyists to pass business tax breaks before the end of the year but new analysis suggests cuts would be far more costly than promised.
Joe Hughes, federal policy analyst at the Institute on Taxation and Economic Policy, said reinstating the expanded Child Tax Credit would be a better investment. He pointed out it is unclear whether corporate tax breaks would achieve their stated policy goals, but they would make a lot of very rich people even richer.
"The child tax credit, on the other hand, the beneficiaries and the effects are entirely clear," Hughes asserted. "It's children in low- to middle-income families, middle-class families, people making less than about $86,000 a year."
Reinstating the pandemic-era Child Tax Credit would help nearly 60 million children in Wyoming and across the U.S. Proponents of corporate tax breaks passed in 2017 argue they are essential to economic growth and should be made permanent. Critics of the expanded child tax credit, which expired last year doubling child poverty rates, warned it would discourage people from re-entering the workforce.
Researchers at the University of Chicago and the Massachusetts Institute of Technology found the expanded Child Tax Credit did not affect parents' decisions to enter or leave the workforce. Hughes noted working is not free if you have children. For many parents, it is less expensive to stay home than pay rising child care costs.
"An expanded child tax credit that's available to all low-income families can actually help some families re-enter the workforce," Hughes emphasized. "Because now they can receive child care."
Making corporate tax breaks permanent is projected to cost $500 billion but Hughes stressed making the Child Tax Credit fully refundable, where families get assistance even if they don't earn enough to owe taxes, would have a much lower price tag of between $10 billion and $20 billion.
"The most impactful part of the legislation was what made it available to all families, including very low-income families," Hughes added. "In 2021, as a result of the child tax credit, child poverty was cut in half."
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