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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As Alabama's legislative session kicks off, one advocacy group is calling for urgent action to protect children's health and safety.
VOICES for Alabama's Children has outlined 10 key policy priorities for 2025, with a focus on reducing preventable deaths and expanding access to health care. The group's data show more children are losing their lives to car accidents and firearms.
Apreill Hartsfield, policy and data analyst and director of Alabama Kids Count for Voices for Alabama Children, said lawmakers could strengthen child passenger safety laws and implement firearm safety measures to help save lives.
"Hopefully, a child does not come across a firearm but if they do, that there are devices on those firearms that will keep them from being accidentally discharged," Hartsfield urged. "Because this is a reason why children in our state are dying."
Lawmakers have already prefiled about a dozen firearm-related bills. Among them is House Bill 26, which would ban pistols modified to function as machine guns, and House Bill 103, which would require secure firearm storage, making it a crime if a minor gains access due to negligence, with some exceptions.
Hartsfield thinks expanding health care access should also be at the top of lawmakers' agenda. While most Alabama children are covered by Medicaid or ALL Kids, nearly 200,000 working adults remain uninsured, creating challenges for families trying to stay healthy. She stressed when parents have health coverage, their children also reap the benefits.
"The children are more likely to be covered by insurance and are more likely to get regular medical care, to do those 'well baby checks' and just to try to stay ahead of any kind of illness, or any kind of developmental delay," Hartsfield explained.
She added other priorities include expanding mental health services, strengthening tobacco and vaping laws to reduce underage use, and increasing funding for nutrition programs like Summer EBT. The group also wants to see stronger data-driven juvenile justice reforms and updates to the state's public school funding formula to better meet students' needs.
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Tennessee's "State of the Child" 2024 report shows some progress, but also highlights ongoing concerns.
The report from the Tennessee Commission on Children and Youth examines kids' health and mental health, education, family economics, and childcare.
It also looks at the state's child welfare and youth justice data.
Kylie Graves is the director of policy and legislative affairs at the Tennessee Commission on Children and Youth.
She said a key indicator they look at most frequently is the percentage of children living in poverty. She noted that the percentage of children living in poverty in Tennessee did go up slightly between 2022 and 2023.
"So in 2023 we had 19.7% of our children under 18 living below the federal poverty line," said Graves. "For our kids under five, it was 20% - just a little bit above that. That did stay consistent between '22 and '23, so we saw no change in the under five poverty rate."
Graves noted that the annual report provides a comprehensive overview of child well-being in the state.
She said it tracks progress, comparing it with previous years and other states, and highlights areas for growth.
Graves said the report consistently reveals the high cost of infant center-based child care for families in Tennessee.
"The average market rate is $13,126, and so it's very expensive for a lot of families," said Graves. "That does make it more expensive than in state tuition for all but one of our state universities."
Graves pointed out that Tennessee's education system is showing progress, with T-CAP scores rebounding post-pandemic - though most students are still only "approaching" expectations.
She said teen mental health is still a serious concern, with nearly one in four high school students reporting thoughts of suicide.
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New child labor laws went into effect in Virginia at the start of the year, but some advocates say more can be done.
House Bill 100 took effect in January, raising the maximum financial penalty to $25,000 -- up from $10,000 -- if a child dies or is seriously injured while working in violation of labor law. Cases that do not involve injury or death will have stiffer penalties, too, with maximum fines set at $2,500.
Nina Mast, a policy and economic analyst for the Economic Policy Institute, said it is just the start of combatting illegal child labor in the Commonwealth.
"This was a really important first step in the overall goal of strengthening child labor standards in Virginia," she said, "but the penalty amounts are really only as effective as the enforcement can be in the state."
Mast added that the legislation also created a group made up of youth-serving organizations and young people to explore the creation of workers' rights education for high school students.
Going forward, Mast said new laws must keep young people from working in dangerous or hazardous work environments, including staffing agencies that are often used to fill meatpacking and construction jobs. That keeps the main company from being held liable.
Mast said state labor agencies need more employees to hold companies accountable.
"Employers know this. They know that they will largely get away with violating the law and no one will ever enforce those violations," she said. "Adding capacity is really important to signaling to employers that the law will actually be enforced when violations are found."
Before the law went into effect, there was no minimum financial penalty for business owners who broke child labor laws.
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