ICYMI: Ohio Working Families Benefiting from Middle-Class Tax Cuts as Payments Once Again Hit Bank Accounts

Columbus, OH — Today, as another round of child tax credit payments enters bank accounts of millions of Ohioans the Ohio Capital Journal reminds all of us just how critical those checks are to hard-working Ohioans. Capital Journal’s Susan Teben highlighted a new study by Policy Matters Ohio showing how the child tax credit is helping millions of Ohio families, especially during the COVID-19 pandemic. While Ohio Republicans continue to look out for their own interests debating laws that handcuff Ohio businesses, putting them and Ohioans at risk amidst the latest COVID surge, Democrats aided by the American Rescue Plan are putting over $1.6 billion into Ohioans pockets.

“[T]he analysis estimated 1.15 million adults with children reported struggling to pay for basic household expenses before the child tax credit, and after the tax credit, that number decreased by 26%,” writes Teben.

“Thanks to President Biden, Senator Sherrod Brown and Ohio Democrats, the American Rescue Plan is delivering major tax relief for working families with children through a historic expansion of the child tax credit. Despite opposition from Ohio Republicans, the expanded child tax is lifting 132,000 children out of poverty here in Ohio, helping to bolster financial security and spur economic growth in our state,” said Ohio Democratic Party spokesperson Matt Keyes.

You can read more from the Ohio Capital Journal here and below:

  • An analysis by an Ohio-based think tank says the expanded child tax credit has given life to families who were already struggling before the pandemic began, but sank further amid job losses and increased child care needs.

  • The child tax credit was expanded temporarily in March as part of the federal American Rescue Plan, raising the per-child credit from $2,000 per child in 2020 to $3,600 for each child younger than six, and from $2,000 to $3,000 per child for children age six to 16.

  • So far, $1.6 billion has been given to more than 2.1 million Ohio children since July 15, federal data from the U.S. Department of the Treasury shows, averaging $437 per month per family.

  • The think tank said this expansion brought minority communities and children in rural communities funding they needed and didn’t have even before the pandemic.

  • Years of policy choices have held down wages and limited opportunities for many Black and brown and rural families, draining resources from their communities,” the Policy Matters analysis stated.

  • As the pandemic continued, the analysis estimated 1.15 million adults with children reported struggling to pay for basic household expenses before the child tax credit, and after the tax credit, that number decreased by 26%.

  • Citing data from the Center on Budget and Policy Priorities, Policy Matters said an estimated 84% of households who make less than $35,000 per year used the refundable child tax credit to pay for “basic needs, including food, clothing, rent, mortgage, phone and internet, to support their family.”

  • The CBPP said 60% of those making more than $35,000 per year would also be using the credit for the same basic needs.

  • Financial recovery from the pandemic is still going on, as is the COVID-19 pandemic, so having the temporary boost has allowed more financial security and stability.

  • Because of the increased financial stability and food security with the expanded child tax credit, among other reasons, Policy Matters recommended that Congress make the expansion permanent.

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