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Jan 15, 2025 | 
niskanencenter.org | Joshua T. McCabe |Leah Libresco Sargeant
The approaching expiration of the temporary provisions in the 2017 Tax Cuts and Jobs Act (TCJA), combined with growing concerns about the deficit and national debt, has reignited debates over whether Congress can justify extending this signature Republican tax legislation. The headline price tag for extension–which would add trillions to the deficit–belies a complex mix of provisions with varying net costs.
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Dec 11, 2024 | 
niskanencenter.org | Joshua T. McCabe
The introduction and expansion of fully refundable child tax credits in eleven states are a significant positive development in family policy. However, as highlighted in our research, the design choices states make when implementing these reforms can vary in effectiveness, with some approaches proving more beneficial than others:Most states already have a solid foundation for reform in their existing exemptions and credits.
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Nov 12, 2024 | 
niskanencenter.org | Joshua T. McCabe
Several factors play a critical role in ensuring family economic security. Competitive labor markets create opportunities for families to increase their earning power, while income supplements provide a safety net during times of economic or personal hardship. Evidence also highlights the importance of family structure, showing that children tend to thrive when living in stable, two parent households.
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Oct 7, 2024 | 
niskanencenter.org | Joshua T. McCabe
Welcoming a new baby is one of life’s greatest joys, but it can also bring temporary disruptions to household income stability. New parents face a dual burden: a decline in income as they take time off to care for their newborn, and a rise in expenses related to childbirth and preparing for their baby’s arrival. The combination of reduced earnings and increased costs makes it more difficult for families to grow, as shown in Figure 1 illustrates.
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Sep 24, 2024 | 
niskanencenter.org | Joshua T. McCabe
One of the most significant state-level innovations in family policy over the past two decades has been the proliferation of fully refundable child tax credits (CTC). New York led the way in 2006 with the introduction of the Empire State Child Credit, offering eligible families a minimum $100 per child if they have little or no earnings.
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Jul 1, 2024 | 
niskanencenter.org | Joshua T. McCabe
State policymakers interested in tackling child poverty, particularly for working families, have several policy levers at their disposal. Two of the most popular are refundable earned income tax credits (EITCs) and minimum wage laws. Building on the success of the federal EITC, twenty-five states also administered refundable EITCs in 2023. Thirty states also had minimum wages above the federal standard of $7.25 per hour.
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Jun 12, 2024 | 
niskanencenter.org | Joshua T. McCabe
President Biden is fond of saying, “Don’t tell me what you value, show me your budget, and I’ll tell you what you value.” Illinois policymakers recently had the opportunity to transform how they support children and families with a state child tax credit (CTC). However, this opportunity depended on getting the policy details right, as we recently outlined. Unfortunately, the compromise that emerged fell short, getting key details wrong.
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Jun 5, 2024 | 
niskanencenter.org | Joshua T. McCabe
The Tax Cuts and Jobs Act of 2017 successfully and comprehensively reformed our federal family tax benefits system for the first time in decades. The impending expiration of the law’s major provisions in 2025, including its family tax reforms, provides an opportunity to consider the value of these reforms and options for building on them with a bolder set of reforms.
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May 17, 2024 | 
niskanencenter.org | Joshua T. McCabe
This piece is part of a series of briefs looking at specific state proposals for family tax benefit reforms based on a more comprehensive Niskanen report, The State of our Families: Child and Dependent Tax Benefits in the States. You can find other state briefs here. The Illinois legislature is considering a bill (HB4917) that would introduce a fully refundable child tax credit (CTC) worth up to $300 per child as part of the FY2025 budget.
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Mar 25, 2024 | 
niskanencenter.org | Joshua T. McCabe |Leah Libresco Sargeant
Two major expansions of the Child Tax Credit — one in 2017 focused on simplification and one in 2021 focused on generosity — represent two distinct approaches to supporting families in the tax code. Both expansions are steps in the right direction. Simplifying tax credits and making them more generous are complementary goals that policymakers should consider pursuing in tandem as part of a more comprehensive package.
