2021’s Expanded Child tax credit (CTC)

In July 2021, the parents and guardians of 1.4 million children in Washington received their first payment from the expanded Child Tax Credit. This program, folded into the American Rescue Plan Act, is a short-term stimulus designed to propel us towards recovery. This is a vital first step in creating an economy and tax structure that invests in our children, but we can't stop here.

Child poverty is a driver of poor health outcomes across the nation. The Child Tax Credit as it exists can lift over 65,000 children in Washington state out of poverty.

The impact of this program on public health cannot be overstated. We are grateful to those members of Washington's Congressional Delegation who championed this aid to families with children. We also stand in solidarity with those calling for a permanent expansion and extension of the program.

Thanks to the work of activists like WPSR's Members, millions of families won't have to decide between buying diapers (which cost 14% more than they did last year) and scheduling a trip to the dentist or buying fresh produce this month. Extending cash benefits to American families through a permanent Child Tax Credit is good for public health.

According to the CDC, tax credits that support pregnant parents have been found to reduce low birthweight rates in 23 states by as much as 11%.

In 2011, expanded tax credits lifted 3.1 million children out of poverty and, according to the American Academy of Pediatrics, child poverty catalyzes and exacerbates infant mortality, delayed language development, poor nutrition, and stress.

Indigenous, Black, and Latinx children are up to twice as likely to live in poverty as white children. Cash payments to all families are a tool that will help close the racial divide and end racialized health disparities.

Health Affairs reported that tax credits decrease the probability of an individual reporting elevated levels of the "risky" inflammatory biomarkers connected to adverse mental health outcomes and major depressive disorder.

Making the most robust version of our expanded Child Care Tax credit permanent will improve health and save lives.

Social Spending 

Social spending is much more effective in producing better health than spending on medical care.   As a nation, we spend twice as much on medical care than on the more important social factors.  For the nation as a whole, if we had the average social policy generosity of the other 17 OECD nations, our life expectancy would be close to the healthiest nation, Japan.  Social spending includes things like paid leave, unemployment insurance, pensions, education, housing support, and child care. 

Education

Higher-quality education can propel economic advancement, which increases human capital in the labor market, improves quality of life, and reduces economic inequalities. Policy initiatives focused on education reform entail increased accountability for schools, enhanced teacher recruitment and training, and special support programs for pupils at risk of dropping out. Recent research has confirmed that differences in early education and school quality are the largest educational indicators of income disparities across generations  (Steil, Menendian, & Gambhir, 2014). These economic factors act as an important link between schooling and health, accounting for about 30% of the correlation in the United States. From a family perspective, accumulating wealth over generations allows subsequent generations to allocate resources towards improving health and being able to excel in school (Lawrence et al., 2018).

CASH ASSISTANCE & FOOD SECURITY

The “safety net” refers to a collection of government-funded programs that support individuals and families (primarily those who are low-income) through financial and in-kind support. Cash assistance programs for the most vulnerable in society are key in mitigating economic inequity and inequality, as they are designed to reduce hardship and promote well-being. While there are multiple safety net programs, WPSR advocates for generous cash assistance programs that promote economic growth for low- and moderate-income people, such as Temporary Assistance for Needy Families (TANF) and Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps.