FOR IMMEDIATE RELEASE
September 15, 2021
Contact: WisDems Communications (press@wisdems.org)
Why Did Wisconsin Republicans Vote Against President Biden’s Expanded Child Tax Cut?
MADISON, Wis. — Today, as the third round of payments from President Biden’s middle-class tax cuts hit bank accounts, Wisconsin parents are breathing a little bit easier as the expanded Child Tax Credit helps pay for food, child care, and the cost of raising children. Across the country, Biden’s middle-class tax cuts are an essential lifeline for families – in fact, in an August study, just one payment reduced financial anxiety for 56% of families surveyed.
As families across the state celebrate these expanded benefits, made possible by President Biden’s American Rescue Plan, many are left wondering why every single Wisconsin Republican voted against this critical relief.
“Wisconsin Republicans proved once again that their allegiance to their party overlords and wealthy donors knows no bounds,” said Democratic Party of Wisconsin Rapid Response Director Julia Hamelburg. “Childhood poverty is not a partisan issue but the Wisconsin GOP has somehow come out against alleviating starvation for children. The American Rescue Plan is delivering millions in relief to Wisconsin families and helping parents put food on the table. Voting against this plan to help Wisconsin’s working families is not only morally wrong, it’s politically disastrous.”
Here’s how making the Child Tax Credit permanent would help Wisconsin:
- Increases the existing tax benefit from $2,000 up to $3,000 per child ($3,600 for children under age 6)
- Provides payments to the parents of 1,158,000 children in Wisconsin – including low-income families who previously did not receive the full benefits.
- Reduces the childhood poverty rate in the state to less than 4% and helps raise 46,000 Wisconsin children out of poverty.
- Returns half of families’ spending on child care for children under the age of 13 through a tax credit – they can receive up to $4,000 in credit for one child or $8,000 for two or more children
Here’s how the expanded Child Tax Credit is already helping parents across the country:
- “In just a few months, the new child tax credit featuring advance monthly payments has relieved financial instability and lowered food insecurity for many families with children.”
- “Continuing the expanded credit beyond 2021 would slash child poverty even further, reducing it to about 8.4% from 14.2%, a fall of roughly 40%.”
Forbes: How Monthly Child Tax Credit Payments Are Impacting Americans’ Finances
- “The new monthly child tax credit payments have made a significant impact on millions of families. According to the Census Bureau Household Pulse Survey, compared to the prior period before the disbursement of the first child tax credit payments, the number of families with kids earning $50,000 or less who didn’t have enough to eat declined by more than seven percentage points.”
- “Natalie Foster, the co-chair of the Economic Security Project, says the new child tax credit is making a difference and reducing poverty for families. Foster says families use the payments to pay bills, buy groceries and get kids ready for school. ‘Across the board, it is a lifeline for families struggling during the pandemic and crucial to the efforts to rebuild,’ says Foster.”
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