The measure, potentially enacted under a previous administration, concerns modifications to the tax code intended to provide financial assistance to families with children. It typically operates by reducing the amount of tax owed by eligible individuals or couples, based on factors such as income level and the number of qualifying children. For instance, a family meeting specific income criteria with two children might receive a credit that directly lowers their tax liability.
Such legislation aims to alleviate the financial burden associated with raising children, stimulate economic activity through increased household spending, and potentially reduce child poverty rates. Historically, adjustments to child-related tax provisions have been used as policy tools to address societal needs and incentivize certain behaviors, such as workforce participation. These provisions can represent a significant source of support for lower and middle-income families.
