Child Tax Credit

What is the impact of expanding the CTC?

Child Tax Credit: Options for Reform

Most of the 2017 Tax Cuts and Jobs Act’s (TCJA’s) individual tax provisions, including its CTC expansion, are scheduled to sunset at the end of 2025. Beginning in 2026, the maximum CTC value will fall from $2,000 to $1,000 and be limited to a narrower set of taxpayers. This expiration may renew discussion of reform options for the CTC.

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Child studying in front of seated parents

Budgetary and Distributional Effects of the Updated Family Security Act Framework

Child Tax Credit: Conventional Budget Scores

How Do Individual Changes in Economic Behavior Affect Our Revenue Scores?

How Does Macroeconomic Feedback Affect Our Revenue Scores?

All CTC expansions benefit parents and children. But key design details determine which families benefit the most.

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CTC reforms affect work incentives and add to the take-home incomes of families, potentially affecting employment and long-term earnings of children.

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Expanding the CTC increases deficits. What that means for the U.S. economy depends on how the Federal Reserve responds.

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