The Earned Income Tax Credit and Child Tax Credit: Building on Success for Healthy Families

Key Takeaways

  • The EITC and CTC are two successful federal tax credits for workers with low and moderate incomes that boost family financial resources and lift families out of poverty.
  • Research shows that expansions of these working-family tax credits directed towards families with the lowest incomes would effectively lift children out of poverty, improve the health and well-being of families, decrease health care costs, and stimulate the economy.
  • Expansions to the EITC and CTC have historically had a larger net positive impact for people of color – particularly Black and Latinx families – who are overrepresented among low income workers and disproportionately experience higher rates of poverty and poor health compared to white families.
  • Permanent expansions to the EITC and CTC are critical for improving current and future health, especially as the economic crisis created by COVID-19 disproportionately pushed low-income families, immigrants, and communities of color deeper into poverty, with lasting impacts on health inequities.