4 ms·

Not sure if you're aware but the US recently started sending checks to families every month.

by srj 5y ago

nielsbot 5y ago
The blurbs I've heard say this has cut US child poverty in half. I should find a source...
iammisc 5y ago
You can't honestly believe that this reduced child poverty. While the Child tax credit has been increased, it's been on a steady increase for a while, and the net amount hasn't changed that much. If the claim is that the timing of payments is reducing poverty.. that's quite the claim. The more obvious answer is that America had quite the recovery from the great recession including a pre-pandemic unemployment rate approaching 0%.
- lkbm 5y ago
  > While the Child tax credit has been increased, it's been on a steady increase for a while, and the net amount hasn't changed that much. From what I can tell, it increased by 80%[0], from $2,000 to $3,600. (It varies for different household structures/incomes, but in general the poorest get the most.) > If the claim is that the timing of payments is reducing poverty.. that's quite the claim. As someone who's got some close friends who are poor, yes, monthly payments can make a big difference. But really, the extra $1,200 isn't insignificant. It's 5% of the 25%ile income, and 14% for the 10%ile[1]. $1,200 a year is literally over 50% some of my friends' total food budgets. (I'm sure someone will jump in to explain how they could never eat for that little, but I can assure you that many Americans do.) [0] https://www.forbes.com/advisor/taxes/will-i-receive-the-child-tax-credit-in-2022/ https://www.forbes.com/advisor/taxes/will-i-receive-the-chil... [1] https://dqydj.com/income-percentile-calculator/ https://dqydj.com/income-percentile-calculator/
  - iammisc 5y ago
    Is the claim that 1600 dollars made the difference between poverty and subsistence? I have nothing against the child tax credit. I think it's great. But I am hard pressed to believe 1600 dollars has eliminated poverty. If it did... Great that's a really cheap way to do it!
    - lkbm 5y ago
      Jeez, how'd I get $1200? $1600, yeah, thanks. If your monthly bills are $100 below what you make, then it makes sense that an extra $133 will shift you from "guess I'll skip dinner" to "I don't have to skip dinner", at least until costs change or some financial shock like a car repair comes up. Still others hopefully went from just being able to cover the monthly bills to that + saving for unexpected expenses. Some people are fine with none, some people need much more, but across a large set of people, some percentage of people will go from below the bar we've defined to above, or above more often than before. We definitely haven't come close to fully eliminated poverty, but if measurably fewer children are undernourished (or whatever metric we use) that's pretty nifty.
RegBarclay 5y ago
Those checks are prepayment of a child tax credit. In my case, it just increases what I'll owe when I file my taxes.
BeetleB 5y ago
They are merely paying out a tax credit early. Families are not getting more (or at least, not much more) than before due to this.
rootusrootus 5y ago
I am aware. However, any reduction in child poverty that was observed in July cannot be due to the rebate checks currently being sent out.

Not sure if you're aware but the US recently started sending checks to families every month.

by srj 5y ago

Not sure if you're aware but the US recently started sending checks to families every month.

nielsbot 5y ago

The blurbs I've heard say this has cut US child poverty in half. I should find a source...

iammisc 5y ago

You can't honestly believe that this reduced child poverty. While the Child tax credit has been increased, it's been on a steady increase for a while, and the net amount hasn't changed that much. If the claim is that the timing of payments is reducing poverty.. that's quite the claim. The more obvious answer is that America had quite the recovery from the great recession including a pre-pandemic unemployment rate approaching 0%.

lkbm 5y ago
> While the Child tax credit has been increased, it's been on a steady increase for a while, and the net amount hasn't changed that much. From what I can tell, it increased by 80%[0], from $2,000 to $3,600. (It varies for different household structures/incomes, but in general the poorest get the most.) > If the claim is that the timing of payments is reducing poverty.. that's quite the claim. As someone who's got some close friends who are poor, yes, monthly payments can make a big difference. But really, the extra $1,200 isn't insignificant. It's 5% of the 25%ile income, and 14% for the 10%ile[1]. $1,200 a year is literally over 50% some of my friends' total food budgets. (I'm sure someone will jump in to explain how they could never eat for that little, but I can assure you that many Americans do.) [0] https://www.forbes.com/advisor/taxes/will-i-receive-the-child-tax-credit-in-2022/ https://www.forbes.com/advisor/taxes/will-i-receive-the-chil... [1] https://dqydj.com/income-percentile-calculator/ https://dqydj.com/income-percentile-calculator/
- iammisc 5y ago
  Is the claim that 1600 dollars made the difference between poverty and subsistence? I have nothing against the child tax credit. I think it's great. But I am hard pressed to believe 1600 dollars has eliminated poverty. If it did... Great that's a really cheap way to do it!
  - lkbm 5y ago
    Jeez, how'd I get $1200? $1600, yeah, thanks. If your monthly bills are $100 below what you make, then it makes sense that an extra $133 will shift you from "guess I'll skip dinner" to "I don't have to skip dinner", at least until costs change or some financial shock like a car repair comes up. Still others hopefully went from just being able to cover the monthly bills to that + saving for unexpected expenses. Some people are fine with none, some people need much more, but across a large set of people, some percentage of people will go from below the bar we've defined to above, or above more often than before. We definitely haven't come close to fully eliminated poverty, but if measurably fewer children are undernourished (or whatever metric we use) that's pretty nifty.

RegBarclay 5y ago

Those checks are prepayment of a child tax credit. In my case, it just increases what I'll owe when I file my taxes.

BeetleB 5y ago

They are merely paying out a tax credit early. Families are not getting more (or at least, not much more) than before due to this.

rootusrootus 5y ago

I am aware. However, any reduction in child poverty that was observed in July cannot be due to the rebate checks currently being sent out.