State thriving families tax credit would increase stability for nearly 2 million Ohio children
Posted November 14, 2022 in Press Releases
A new report by Policy Matters Ohio shows the potential benefits of two state thriving families tax credit proposals. Both proposals would help nearly 986,000 Ohio families and 1.8 million children under 18 and provide eligible families with an average tax refund of roughly $1,000 a year, according to the analysis.
“During the COVID pandemic, people of all backgrounds came together and pushed our leaders to step up for families by expanding the federal child tax credit,” said report author, Policy Matters Researcher Will Petrik. “As a result, over 1.2 million families in Ohio had more money to pay the rent, put gas in the car and food on the table. Child poverty across the nation hit historic lows. Ohioans are facing greater hardship today because Congress allowed the expanded child tax credit to expire. Ohio’s state leaders can expand opportunities for children in Ohio and pass a thriving families tax credit.”
Under the first option analyzed by Policy Matters, families making less than $65,000 a year would receive $1,000 for each child under 6 and $500 for each child aged 6 to 17. The average family would receive $991 a year. Under option 2, families would receive $700 for each child under 18 and families would receive an average of $1,063 a year. Under both proposals, individual tax filers who make $65,000 are eligible for the maximum annual tax credit amount per child, with benefits phasing out up to incomes of $85,000 a year.
Both proposals would reduce barriers to security and prosperity for families of color. While more than half of white families with children would benefit, 77% of Black children in the state would benefit, because Black Ohioans are paid lower wages than white Ohioans, on average.
“Ohio families continue to grapple with increasing prices,” Petrik said. “Tax credits are effective because they put cash directly in parents’ and caregivers’ hands, so they can make decisions about how to address their family’s immediate needs. We know it works, but too often, politicians choose to give tax giveaways to corporations and the wealthiest Ohioans. Now, as state lawmakers begin the debate about the future priorities of Ohio during the next two-year budget, Ohioans should come together and push their representatives to include a thriving families tax credit.”