Congressman Doyle: Expanded Child Tax Credit Benefits Pennsylvania
Washington, DC – U.S. Representative Mike Doyle (D-PA-18) announced today that a recent study concluded that the Child Tax Credit pumped over $693 million into Pennsylvania’s economy and $18.6 billion into local economies nationwide in July.
This tax cut for middle class households provided assistance to the families of more than 200,000 children in Pennsylvania, with an average monthly payment of $423, totaling over $554 million to the state.
Based on the July payments, the new study from the Congressional Joint Economic Committee estimates that the Child Tax Credit monthly payments will pump $18.6 billion into local economies across the country each month.
“When the middle class receives a tax cut, it not only benefits working families but also grows the economy,” Congressman Doyle noted. “Consequently, the expanded Child Tax Credit helps all Americans.”
The Child Tax Credit was expanded and authorized to be paid out monthly as part of the American Rescue Plan, enacted this spring with Congressman Doyle’s support. This temporary provision will provide a tax cut to working families this year and help the economy recover from the COVID-19 pandemic. More than 27 million children across the United States will benefit from this expansion, which will cut child poverty in half.
“Tax cuts that are solely focused on the ultra-wealthy and the top one percent of earners don’t stimulate our economy like the Child Tax Credit does,” Congressman Doyle observed. “When the rich get a tax break, they often don’t spend it all, while working families do. This was demonstrated most recently by the 2017 Trump tax cuts for the wealthy, which didn’t grow the economy as promised. It’s important that Congress continue to pass economic relief that will help most Americans, not the privileged elite.”
The first round of payments was distributed to families on July 15, 2021 and will continue until December 2021. Families will receive the second half of the child tax credit when they file their 2021 taxes in April 2022. The next payment will be distributed on August 13, 2021.
“I am working with many of my Democratic colleagues in Congress to make the expansion and monthly distribution of the Child Tax Credit permanent,” Congressman Doyle added.
Click here for more information about how to claim the Child Tax Credit and whether you qualify.
Click here to read the report on the expanded Child Tax Credit.