NC Budget and Tax Center, Trump Administration

816,000 NC kids would be left out of GOP tax bill’s Child Tax Credit proposal due to low income

House Republican leaders highlight an increase in the maximum value of the federal Child Tax Credit (CTC) as their tax bill’s signature benefit for working families, but the provision completely excludes 354,000 children in North Carolina whose parents work in low-paying jobs, according to a new report from the Washington, DC-based Center on Budget and Policy Priorities. Another 462,000 North Carolinian children in low-income working families would receive less than the full $600 increase in the credit that would be available to higher income families.

Altogether, about 816,000 North Carolinian children in working families would either be excluded entirely or only partially benefit from the increase in the CTC. A larger share of North Carolinian children are excluded or only partially benefit than in the country as a whole.

Nationally, roughly 23 million children would be partially or entirely excluded from the House Republicans’ plan, even as it newly extends the CTC to families with incomes between $150,000 and $294,000. For example, a single mom of two working full time at the minimum wage would get no benefit from the CTC expansion under the House Republican plan while a married couple earning $230,000 would receive a new $3,200 benefit.

Republican Senate leaders have suggested that they may increase the CTC further when they release their tax bill this week. Unless they revise the proposal’s basic structure, however, it would provide far larger benefits to higher income families than to families that face difficulties affording the basics.

Analysis on the Children and Top Working Parent Occupations Affected

Analysis shows that of the roughly 23 million children across America that would be partially or fully excluded from the CTC increase:

  • 8 million are children under the age 6
  • 7 million are Latino children
  • 3 million are white children
  • 6 million are African American children
  • 600,000 are Asian children

According to the report:

“The average income of working families with children that would be partially or entirely left out of the CTC increase is $22,000.  Among these working families, two-thirds include at least one parent who works full time for most of the year.”

Analysis of available data shows that the top occupations of working parents fully or partially left out of CTC proposal in house tax bill are:

  • Office and administrative support
  • Sales
  • Food preparation and serving
  • Building and grounds cleaning and maintenance
  • Construction and extraction
  • Transportation and material moving
  • Manufacturing
  • Personal care and service
  • Health care support

Based on this latest report it is clear that rushing this tax legislation without real debate, without informed analysis, and without input from key stakeholders is not the way our Congress should operate.

Luis A. Toledo is a Public Policy Analyst for the Budget & Tax Center, a project of the North Carolina Justice Center.

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