Illinois lawmakers are attempting to enact a bill establishing a child tax credit. The bill is intended to assist working families in providing for their children.
State Senator Mike Simmons (D-Chicago) and Rep. Marcus Evans (D-Chicago), as well as advocacy groups, are working to provide additional assistance to families in Illinois who are struggling to provide for their children.
Who Would Be Eligible For Illinois Child Tax Credit?
The higher federal child tax credit assisted in keeping millions of children out of poverty, but the program will expire in December 2021. Despite efforts at the federal and state levels to resurrect the program, there have been no meaningful developments. Illinois politicians are now pressing for a permanent Illinois child tax credit.
Earlier this week, a group of Democratic lawmakers presented legislation to create a state-level Illinois child tax credit scheme. Low- and middle-income households in Illinois would be eligible for a $700 income tax credit each year for each kid under the age of 17. The language for this idea is contained in Illinois Senate Bill 1444.
“Half of the children in the state of Illinois would benefit directly from the passage of this legislation. One out of two children in the state of Illinois under the age of 17 would benefit from this legislation, and would suddenly be able to eat a full dinner,” remarked Senator Mike Simmons (D-Chicago).
Single filers with less than $50,000 in income and joint filers with less than $75,000 in income would be eligible for the full credit. The credit amount would be decreased by $24 for each $1,000 of additional income for taxpayers with income above the threshold.
One of the proposal’s proponents, State Sen. Mike Simmons (D-Chicago), estimates the new Illinois tax credit will benefit around half of the state’s children.
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Will The Proposal Be Accepted?
Senator Robert Peters, a Democrat from Chicago, is one of the proposal’s proponents. However, it’s unclear whether the Illinois child tax credit proposal has the backing of the state’s senior Democratic leaders in the General Assembly.
It’s also uncertain whether Gov. J.B. Pritzker would include the state-level child tax credit in his proposed budget.
Although the idea appears to be good news for low- and middle-income households, it may attract opposition due to the anticipated annual cost. According to the nonprofit Economic Security for Illinois, the scheme will cost the state between $700 billion and $800 billion.
Illinois legislators have enjoyed multibillion-dollar surpluses in the last two years, but the Governor’s Office of Management and Budget predicts a state deficit as early as the fiscal year 2025.
Furthermore, some MPs dispute the need for a new program. Illinois currently provides an EITC to residents who meet specific income limits, even if they do not have children. As a result, an Illinois child tax credit would be an additional payment made to households with children.
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