A new report released by the US Census Bureau This indicates that there will be a big jump in the number of poor children in the country in 2022.
According to the data, the supplemental poverty measure among children under 18 more than doubled, from 5.2% in 2021 to 12.4% in 2022. Among the general population, absolute poverty increased by 4.6 percentage points to 12.4% in 2022.
The supplementary poverty measure differs from the official poverty measure, which was largely unchanged in 2022. The official poverty measure only takes into account cash resources, while the supplemental poverty measure includes both cash and non-cash benefits and subtracts essential expenses such as taxes and medical expenses.
Unlike the official poverty measure, the supplementary poverty measure takes into account tax exemptions and changes in taxation policies.
A major reason for the increase in child poverty was the expiration of the expanded child tax credit. In 2021, the per-child amount increased from $2,000 to $3,000. For children up to age 5, the credit increases to $3,600 per child.
Couples earning up to $150,000 per year, heads of households earning up to $112,500 per year, and individuals earning up to $75,000 annually were eligible for the full credit.
The U.S. Census Bureau estimates that the child tax credit kept 5.3 million people out of poverty in 2021. In 2022, with the child tax credit returning to its normal level, it will keep 2.4 million people out of poverty. Essentially, by expanding the child tax credit, the U.S. Census Bureau estimates that nearly 3 million were kept out of poverty in 2021.
The Census Bureau says that Social Security is by far the most effective program for reducing poverty. Social Security alone could reduce poverty by 28.9 million Americans in 2022.
The expansion of SNAP benefits and free school lunch programs continue to play a large role in fighting poverty, reducing poverty levels by 5.1 million.
However, certain essential expenses increase the number of people experiencing poverty. Work expenses pushed 3.6 million people into poverty, while FICA pushed 4.1 million into poverty. The Census Bureau says 7.1 million Americans became poor because of medical expenses.
The new data provided President Joe Biden with some political ammunition to renew efforts to expand the child tax credit.
President Biden said, “Today’s Census report reflects the serious consequences of Congressional Republicans’ refusal to extend the enhanced child tax credit even as they pursue costly corporate tax cuts.” “We have cut child poverty by nearly half to record lows for all children in this country, primarily by expanding the child tax credit.”
Although President Biden blamed Republicans for blocking efforts to expand the child tax credit, Republicans led a push in 2017 to increase the child tax credit to its current level.
While some Republicans, such as Senator Marco Rubio, have also called for expanding the child tax credit, Rubio said the expansion should include work requirements.
Rubio said in 2021, “We have seen the disastrous results when the government pays people not to work.” “We need to take common-sense steps to support working parents, not rebuild the failing welfare state.”