BEFORE THE HIGH COURT.
IN WASHINGTON, WITH SOME MEMBERS
BALKING AT THE PRICETAG, THE
U.S. SENATE HAS NOT TAKEN ACTION
ON THE $2 TRILLION SPENDING BILL
PASSED IN THE U.S. HOUSE CALLED
THE BUILD BACK BETTER ACT
PROPOSED BY PRESIDENT JOE BIDEN.
IN THAT BILL, THE CONTINUATION
OF THE ENHANCED CHILD TAX CREDIT
GIVEN TO FAMILIES OVER THE LAST
HALF OF 2021.
THAT CREDIT PROVIDED UP TO
$3,600 ANNUALLY FOR YOUNGER
CHILDREN AND $3,000 FOR OLDER
CHILDREN IN A FAMILY.
IN WISCONSIN, MORE THAN A
MILLION CHILDREN WERE RECIPIENTS
OF THE IMPROVED TAX CREDIT.
AS AN AN LAST AT THE WISCONSIN
BUDGET PROJECT, TAMARINE
CORNELIUS STUDIED WHAT THEY
SPENT IT ON.
SHE JOINS US NOW.
THANKS VERY MUCH FOR BEING HERE.
>> THANK YOU FOR HAVING ME.
>> YOU LOOKED AT HOUSEHOLDS WITH
INCOMES UNDER $35,000.
HOW WAS THE MONEY FROM THE TAX
CREDIT MOSTLY USED?
>> SO THIS IS RESEARCH THAT'S
OUT THERE IN TERMS OF HOW
FAMILIES OF LOW INCOMES ARE
SPENDING THEIR TAX CREDIT.
AND SOME SENATORS OR AT LEAST
ONE SENATOR HAS EXPRESSED
CONCERN THAT FAMILIES MIGHT NOT
BE MAKING WISE DECISIONS WITH
HOW THAT MONEY IS SPENT, AND
THERE'S TWO, I THINK, RESPONSES
TO THAT.
ONE IS THAT FAMILIES KNOW BEST
WHAT THEY NEED TO SUPPORT
TEMSELVES AND HOW TO SPEND
THEIR BUDGETS AND TO SUGGEST
OTHERWISE I THINK IS JUST
INCREDIBLY OUT OF TOUCH WITH THE
DECISIONS THAT PARENTS MAKE
EVERY DAY IN TRADEOFFS FOR THE
WELL-BEING OF THEIR FAMILIES.
AND THEN THE SECOND PART IS THAT
WE KNOW HOW FAMILIES SPEND THEIR
MONEY FROM THE TAX CREDIT, AND
THE TOP THREE THINGS THAT THEY
SPEND THEIR MONEY ON, NUMBER ONE
IS FOOD.
SO GROCERIES.
NUMBER TWO IS UTILITIES.
YOU KNOW, LITERALLY KEEPING THE
LIGHT ON OR HEAT ON, AND NUMBER
THREE IS RENT, WHICH IS KEEPING
A ROOF OVER THEIR FAMILY'S HEAD.
SO WHAT WE SEE IS THAT A LOT OF
THESE TAX CREDIT PAYMENTS WENT
TO SUPPORT VERY BASIC NEEDS TO
STRENGTHEN FAMILIES.
>> SO MEANWHILE, RIGHT NOW,
THOUGH, RISING PRICES ARE
CUTTING EVEN FURTHER INTO
FAMILIES' BUDGETS.
HOW BIG OF A BURDEN IS THIS FOR
LOWER INCOME FAMILIES RIGHT NOW?
>> SO WHEN FAMILIES STRUGGLE TO
MAKE ENDS MEET, THAT IS
STRESSFUL FOR PARENTS AND FOR
KIDS, AND THERE WAS JUST A PIECE
IN THE NEWS RECENTLY ABOUT HOW
THERE WAS A STUDY WHERE THEY HAD
POOR MOTHERS AND THEY GAVE THE
MOTHERS A CASH STIPEND FOR THE
FIRST YEAR OF THE KIDS' LIVES,
AND MEASURED THE BRAIN
DEVELOPMDEVELOPMENT OF KIDS ANDW
THERE WAS IMPROVED BRAIN
DEVELOPMENT FROM GIVING THEM
SOME SUPPORT.
AND SO WHAT WE SEE IS THAT
POVERTY, WHETHER THAT'S FROM LOW
WAGES OR OTHER THINGS, HAS
STRESS FOR KIDS AND PARENTS THAT
CAN AFFECT THEIR HEALTH, THAT
CAN AFFECT THEIR ACADEMICS
ACHIEVEMENT AND CAN JUST AFFECT
THE WHOLE REST OF THEIR LIVES,
AND IF WE CAN MAKE INITIAL
INVESTMENTS NOW, THAT CAN PAY
OFF FOR EVERYBODY IN THE LONG
TERM.
>> SO NATIONAL STUDIES HAVE
SHOWN THAT SOME 3.7 MILLION
CHILDREN WERE LIFTED OUT OF
POVERTY IN DECEMBER, AN
ESTIMATED DECLINE IN POVERTY OF
NEARLY 30%, BECAUSE OF THESE
CHILD TAX CREDITS.
HOW MEANINGFUL IS THAT?
>> SO IN WISCONSIN, THAT
TRANSLATES TO LIFTING ABOUT
45,000 KIDS OUT OF POVERTY, SO
THAT'S ENOUGH TO FIT EVERY --
FILL EVERY SEAT IN AMERICAN
FAMILY FIELD WITH A LITTLE LEFT
OVER.
WHEN WE LIFT THOSE KIDS OUT OF
POVERTY, THAT'S HAVING AN EFFECT
RIGHT NOW BUT IT'S REALLY HAVING
AN EFFECT FOR THE REST OF THEIR
LIVES.
AND IT ESPECIALLY IMPORTANT FOR
KIDS OF COLOR, BECAUSE THEIR
FAMILIES -- BECAUSE OF HISTORIC
AND CURRENT DISCRIMINATION IN
THE LABOR MARKET AND IN
HEALTHCARE SYSTEM AND EDUCATION
SYSTEMS OFTEN HAVE LOWER WAGES
AND ARE MORE LIKELY TO LIVE IN
POVERTY SO IT HAS AN ESPECIALLY
INTENSE EFFECT ON THOSE KIDS.
>> SO IF FAMILIES AND CHILDREN
NEED THIS KIND OF INFUSION TO
RISE ABOVE THE POVERTY LINE, I
WOULD EXPECT THAT MANY PEOPLE
WOULD LIKE THESE KINDS OF CHILD
TAX CREDITS TO BECOME PERMANENT.
>> RIGHT, AND THE BUILD BACK
BETTER CONTINUED SOME OF THE
IMPROVEMENTS AND MADE PERMANENT
SOME OF THE IMPROVEMENTS.
THERE'S KIND OF THREE
IMPROVEMENTS THAT BUILD BACK
BETTER WAS GOING TO MAKE.
ONE WAS -- OR THAT WE HAD IN THE
AMERICAN RESCUE PLAN LAST YEAR,
AND THAT WE'RE GOING TO BE
CONTINUING.
ONE WAS THAT WE GOT THE MONTHLY
PAYMENTS, INSTEAD OF ALL IN A
LUMP SUM, SO PARENTS COULD USE
TO PAY MONTHLY EXPENSES LIKE
YOU'VE GOT TO FILL UP THE GAS IN
YOUR CAR ALL THE TIME, NOT JUST
ONCE AT THE END OF THE YEAR WITH
YOUR TAX RETURN, RIGHT?
THE SECOND WAS THE INCREASED
CREDIT AMOUNTS WHICH YOU TALKED
ABOUT, AND THEN THE THIRD, WHICH
HAD THE BIGGEST BANG FOR THE
BUCK IN TERMS OF POVERTY
REDUCTION IS THAT IT REMOVED A
PROVISION THAT PROHIBITED
PARENTS WITH THE LOWEST INCOMES
FROM GETTING THE FULL CREDIT
AMOUNT.
SO THAT IMPROVEMENT MEANT THAT
ABOUT -- THAT THE PARENTS OF
ABOUT 350,000 KIDS IN WISCONSIN,
THAT THE FULL CREDIT -- GOT THE
FULL CREDIT WHEREAS BEFORE THEY
DIDN'T.
SO AS WE THINK ABOUT WHAT
VERSIONS OF THE CHILD TAX CREDIT
WE MIGHT MAKE PERMANENT, WHAT WE
CAN EXTEND FOR A LITTLE BIT AND
WHAT'S MOST IMPORTANT, THAT PART
IS THE MOST IMPORTANT IN LIFTING
KIDS OUT OF POVERTY.
>> ALL RIGHT.
WELL, THANK YOU VERY MUCH FOR
YOUR INFORMATION.
TAMARINE CORNELIUS, APPRECIATE
IT.