Tax-filing season is underway, and Congress is one step closer to helping low-income families get a bigger break on their returns. Policy experts say a new expansion of the Child Tax Credit would address poverty, in Wisconsin and elsewhere.

Late this week, the U.S. House passed a bipartisan tax bill that includes a three-year expansion of the Child Tax Credit. Analysts have said it isn't as robust as the one-year expansion from 2021, but a key provision would allow families with little or no income to gain eligibility.

Tim Smeeding, a retired professor of public affairs and economics at the University of Wisconsin, said it could allow struggling households to address a big expense they haven't been able to cover.

"You can pay heating bills that you've let go because you know that the utility won't shut you off until you get the tax refund," he said.

Smeeding, who formerly directed the Institute for Research on Poverty, said eliminating those debts frees up money for families to spend on children's needs.

Unlike the previous expansion, there would not be monthly payments. It only would apply to a family's income-tax refund. The compromise measure also includes business tax breaks. Despite bipartisan support in the House, the bill faces an uncertain future in the Senate, with pushback from both Republicans and Democrats.

The Center on Budget and Policy Priorities estimates that in the first year, expanding the Child Tax Credit would lift as many as 400,000 kids above the poverty line.

While there are calls to bring back the original expansion, Kris Cox, the center's deputy director for federal tax policy, said this bill would still make a difference.

"Half of kids who don't get the full credit now, their families will gain $600 or more from the bill," she said, "and about 40% of kids who don't get the full credit now, their families will gain $1,000 or more from this bill."

Bill sponsors hope to get final approval so qualifying households could claim the credit on this year's taxes. Cox said if you file earlier, the measure instructs the Internal Revenue Service o "make good" on your return.

Wisconsin has an Earned Income Tax Credit, but the state is often cited as having a regressive tax structure that hurts low-income households. Experts have said the federal plan would help ease that burden.


get more stories like this via email

Immigrant New Yorkers want lawmakers to create an unemployment bridge program.

It would support unemployed workers who are ineligible for state unemployment insurance by establishing a $500 million fund, providing monthly compensation equal to what other workers receive.

Beyond undocumented people, freelancers and self-employed workers would also be eligible.

Sol Freire Figueroa, labor campaigns director with New York Communities for Change, said this will take a lot of political will.

"Right now in the current environment, the immigration conversation has been a topic that not everyone is willing to talk about, or take care of," said Figueroa. "There are many things the immigrant community needs, and we need the willingness of leadership to stand up for the immigrant community."

While the program has statewide support from lawmakers, it's still a budding concept.

A bill establishing the program was brought before the state Legislature, but failed to advance out of committee.

Figueroa said the biggest source of opposition centers around its potential funding source - a digital ad tax from companies with annual gross revenue from these services of $100 million or more.

While the tax is being debated, it's expected to raise $1 billion for New York, with the unemployment bridge program costing half that.

The program stems from the pandemic-era Excluded Workers Fund which filled a similar role. Figueroa said given how the economy has changed, this program has been a long time coming.

"Considering we're living in an economy where we have more and more workers accessing jobs like working at Uber, or a delivery worker," said Figueroa. "They should be able to access this type of benefit as they are putting the hours in, they are putting the work in."

Once the bill passes the state Legislature and is signed by the governor, Figueroa estimated it could take a year to get the program started.




get more stories like this via email

Federal investments are helping the city of Boston develop greater workforce training programs.

The city received $23 million in 2022 to develop pathways into quality child care, health care and energy jobs.

Trinh Nguyen, chief of worker empowerment for the City of Boston, said city officials knew they needed to focus on getting communities of color and women into well-paying careers.

"We also knew that there are very motivated, talented Boston residents who don't have a bachelor's degree that can meet employers' demand up and down the supply chain," Nguyen explained.

Nguyen pointed out about 2,800 Greater Boston residents have enrolled in the workforce training program. Already, more than 1,000 graduates have secured employment with benefits and opportunities for upward mobility.

In Boston, a significant focus has been child care, a sector in which young people are not filling positions quickly enough as more experienced providers retire.

Nguyen noted too often young people simply do not have the information they need to learn about training and licensure opportunities or where a job in child care could ultimately lead.

"You really have to go into the community and really inform about career pathways in child care," Nguyen observed. "We want to make sure that we have child care workers that reflect the diversity of the clientele for child care."

Nguyen added a stable and secure child care workforce is crucial to the region's future economic growth and that city officials are working with more than 100 employers to secure well-paid jobs for training program graduates. The training is made possible through the federal Good Jobs Challenge program, created through the American Rescue Plan.

For some, apprenticeships provide more than just a job, they offer a career path.

Industry leaders are working around the clock, not only on their day jobs but also to recruit the next generation seeking an alternate path to traditional college.

Jason Strickland, business manager for United Association Local 803, which represents plumbing, pipe fitting, and HVAC professionals in Central Florida, stepped out of his job fair to share how the program changed his life.

"I come from a family where there would be days I would come home and the power people would cut the power off where the locks would get put on the water because my folks couldn't pay all the bills all the time," Strickland recounted. "And now I don't have those same worries and my kids don't have those same worries because I got benefits. I got retirement. I got good training."

Strickland emphasized apprenticeship programs are essential for meeting the growing demand for skilled labor in the Sunshine State. He noted they are using social media to connect with younger generations and share opportunities in the trades. National Apprenticeship Week marked its 10th anniversary last week.

Glenn Kelly, Southern regional representative for North America's Building Trades Unions, prides himself on showcasing how apprenticeship programs offer hands-on-training while allowing participants to earn a living wage.

"We make sure that people understand that you can work with these hands and be able to have a good career for yourselves, make a good livable wage, a good sustainable career," Kelly outlined. "You can have opportunity to be able to retire with dignity. "

To explore a network of apprenticeship opportunities, individuals can learn more from Apprenticeship Florida, which provides access to navigators and resources for both employers and apprentices, all offered through CareerSource Florida and the Florida Department of Education.


get more stories like this via email