IDEAS home Printed from https://ideas.repec.org/a/ucp/nattax/doi10.1086-728703.html
   My bibliography  Save this article

How Would a Permanent 2021 Child Tax Credit Expansion Affect Poverty and Employment?

Author

Listed:
  • Jacob Bastian

Abstract

There is strong disagreement over how a permanent version of the 2021 Child Tax Credit (CTC) would affect families. I explore how different approaches affect the predicted impact on parental employment and poverty. My preferred approach predicts that 367,000 parents would stop working, and child poverty and deep poverty would decrease by 28 percent and 49 percent, representing 3.1 million and 1.5 million children, respectively. Larger elasticities also show a large child-poverty decrease; most parents who stop working do not fall into poverty because of other income sources. This CTC policy would reduce poverty more than the 2020 CTC and Earned Income Tax Credit combined.

Suggested Citation

  • Jacob Bastian, 2024. "How Would a Permanent 2021 Child Tax Credit Expansion Affect Poverty and Employment?," National Tax Journal, University of Chicago Press, vol. 77(2), pages 263-311.
    • Handle: RePEc:ucp:nattax:doi:10.1086/728703
    DOI: 10.1086/728703
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/728703
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/728703
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/728703?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:nattax:doi:10.1086/728703. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/NTJ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.