Without Congressional Action, Improvements to EITC and CTC Set to Expire in 2017
By Alex Meyer
Should the expansions upon the EITC and CTC expire in 2017, 1.6 million people (including 1 million children) would drop into poverty while an additional 14.6 million (including 6.7 million children) would fall deeper into poverty.[1] For 13 million families, including 25 million children, benefits would be cut an average of $1,073.[2]
Even if these expansions were to be made permanent in any of these bills, the current composition of the EITC would not sufficiently cover childless workers. Currently, childless workers under the age of 25 do not qualify for EITC benefits. The president’s budget proposal for fiscal year 2016, one of several such proposals to reform the EITC, would lift an additional 500,000 people out of poverty, and relieve the poverty of an additional 10.1 million.[3]
In addition, should the CTC improvements remain temporary, the minimum qualifying family income to receive partial CTC benefits will raise to $14,500 a year, while the minimum to receive the maximum amount will raise to $28,050 a year.[4] This would be disastrous for those families with the lowest incomes.
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