Building a Stronger Foundation for American Families: Options for Child Tax Credit Reform
Our existing maze of family tax benefits — including the CTC, Earned Income Tax Credit (EITC), Child and Dependent Care Tax Credit (CDCTC), and head of household (HoH) filing status — has several structural deficiencies that make overhauling the system a prerequisite for any effort to boost support for families with children. The report offers…
The document examines reforms to the Child Tax Credit (CTC), advocating for the consolidation of overlapping family tax benefits like the CTC, EITC, CDCTC, and head of household status to reduce child poverty, lower costs, and simplify the tax code.
It finds that a more generous CTC, combined with the reform or elimination of other credits, can maintain or improve poverty reduction while reducing complexity and penalties, ultimately recommending further consolidation as a way to strengthen support for American families.
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