A proposal that would increase the state child tax credits provided to parents, as well as several other families with dependents, is being considered by lawmakers.
With the enlarged governmental child tax credit, that lowered Maine’s poverty rate in children by above 40% during the epidemic, supporters argued the measure might assist families regain some of the economic advantages they experienced. However, Congress did not reauthorize the expanded child tax credit, which led to a decline in family income.
The chief of Maine Kid’s Alliance, Stephanie Eglinton, said that evidence has been found of families who have reentered hard times.
The Enhanced Child Tax Credit Will Not Only Reduce Poverty But Also Help Family Hardships
The state’s present exemption of dependent tax credit would no longer have minimum income limitations under the legislation introduced by House Maureen Terry, making it open to the most vulnerable Mainers with family dependents. Additionally, it would raise the yearly credit for each dependent from approx $300-$350 and adjust it to inflation. The most needy households in Maine are not eligible for the state child tax credit since families are required to have income that is taxable to be eligible. The program would be accessible to low-income families under Terry’s plan.
According to her, the proposal would mean that multiple children whose households have been reeling with the struggles of low income would then become eligible for this CTC. It would be absurd to be denied access to a stimulus credit because of insufficient income. Each dependent individual who has been living with a taxpayer for over five months of a financial year and receives more than half their monetary support from the taxpayer who is eligible for the child tax credit.
The administration of Mills testified in opposition to the law as it was worded, citing various technical issues including the difficulty for the nation in determining who might qualify as an individual dependent.