In July, the Child Tax Credit added $18.6 billion to local economies nationwide and more than $693 million to Pennsylvania’s economy, according to a recent Congressional Joint Economic Committee study.
Middle-class families in Pennsylvania received assistance for more than 200,000 children. The average monthly payment in the state was $423. This totals more than $554 million statewide.
As part of the American Rescue Plan, the credit temporarily provides a tax cut to working families this year.
“Tax cuts that are solely focused on the ultra-wealthy and the top one percent of earners don’t stimulate our economy like the Child Tax Credit does,” U.S. Rep. Mike Doyle (D-PA) said. “When the rich get a tax break, they often don’t spend it all, while working families do. This was demonstrated most recently by the 2017 Trump tax cuts for the wealthy, which didn’t grow the economy as promised. It’s important that Congress continue to pass economic relief that will help most Americans, not the privileged elite.”
The credit will be distributed between July and December. The first payments were made on July 15, while the second payments were distributed on Aug. 13.
When families file their 2021 taxes in April 2022, they will receive the second half of the child tax credit.