Here Is What To Know About The 2021 Child Tax Credit : Planet Money : The Indicator from Planet Money The Biden Administration and Congress have introduced expanded child tax credits for families in 2021. Senator Michael Bennet, the author of the original plan, hopes to make the bill permanent. We speak with him and economist Hilary Hoynes on the implications of child tax credits.

How Do You Reduce Child Poverty?

How Do You Reduce Child Poverty?

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William Thomas Cain/Getty Images
(Photo by William Thomas Cain/Getty Images)
William Thomas Cain/Getty Images

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Nearly one in five children in the US live in poverty. Of OECD countries, the United States is ranked around the bottom in terms of child poverty. Congress and President Biden have recently expanded the child tax credit to address this issue. Children ages 5 and under get $3,600 each and children ages 6 to 17 get $3,000 each.

Senator Michael Bennet wants this policy to stay. The payments do not only go to low-income households. For example, married couples filing jointly can receive the full benefits if their income is less than $150,000. Even if they make more than $150,000, they can receive the $2,000 basic benefit until that amount peters out around $400,000.

Economist Hilary Hoynes says the near-universal aspect of this policy is intended to garner political support. Similar to President Franklin D. Roosevelt's plan to enact Social Security during the Great Depression, an inclusive policy makes it more likely to gather support and stay in place. She says to reduce child poverty in the United States, sending money to upper-middle-class families is still worth the effort.

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