When Children Grow Up Poor, the Nation Pays a Price

“Yet as is so often the case, the reality is much different from what the political rhetoric says. The United States has the weakest safety net among the Western industrialized nations, devoting far fewer resources as a percentage of gross domestic product to welfare programs than do other wealthy countries.

Partly as a result, a majority of Americans will experience poverty during their lives, and America’s rate of poverty consistently ranks at or near the top in international comparisons. Rather than slashing anti-poverty programs, the fiscally prudent question to ask is: How much does this high rate of poverty cost our nation in dollars and cents?”

Senate Democrats have a plan that would cut child poverty nearly in half

“The US is one of the only developed countries in the world without a child allowance — a government program giving every family a set amount of money per child, no strings attached.

A new proposal by Democratic Sens. Michael Bennet (CO) and Sherrod Brown (OH) would change that. The American Family Act of 2017 would dramatically expand the child tax credit, which currently offers up to $1,000 a year for families with significant earnings but little or nothing for many poor people, to pay:

  • $3,000 per year, or $250 per month, per child ages 6 to 18
  • $3,600 per year, or $300 per month, per child ages 0 to 5

The benefits would be distributed monthly, in advance, so that families can pace out their spending and smooth their incomes. Because the CTC, like the earned income tax credit, is currently paid out through tax refunds, it sometimes leads to a perverse situation in which families use it to pay down debt they never would’ve had to incur if they’d gotten the money earlier.”

From Voxhttps://go.edc.org/2rwq