Details

Written by: Natasha Pilkauskas, University of Michigan and Katherine Michelmore, University of Michigan

Published: 23 January 2024

 

Influential lawmakers have struck a deal that could increase the extent to which low-income U.S. families can benefit from the child tax credit for three years. The Conversation asked Natasha Pilkauskas and Katherine Michelmore, public policy researchers at the University of Michigan, to explain what may change and why.

Why does Congress want to expand the child tax credit?

The child tax credit, first enacted in 1997, was originally designed to help middle-class families with the costs of raising kids by giving them and upper-class families a tax credit of US$400 per child.

After several changes, this credit grew to as much as $2,000. Then the government temporarily expanded the credit in two main ways for the 2021 tax year.

Families could get up to $3,600 for each child, and nearly all low-income families could obtain it. In addition, half of this money was disbursed in monthly payments in the second half of 2021.

In 2022, the credit reverted to its previous terms, in accordance with the tax reform package that President Donald Trump signed into law in late 2017.

The maximum credit is currently worth $2,000. Families must earn at least $2,500 to claim any credit, but their earnings must be higher to get the full credit. For example, a family with two children must earn at least about $40,000 to receive the full $4,000 in child tax credits. Families with three or more children have to earn even more to get the full benefits.

What could change this time?

A bipartisan group of House and Senate lawmakers agreed on Jan. 16, 2024, to expand the credit again. If Congress passes the $33 billion measure and President Joe Biden signs it into law, the credit would still be smaller than the 2021 version, and it would not be available to all low-income families.

The new proposal would adjust the earnings requirements. These changes would make it easier for many lower-income families – those earning roughly between $10,000 and $50,000 – to get the full credit. These families would get an average credit that is about $1,130 higher than in 2022.

Families with higher incomes will also see larger benefits in future years if this expansion is passed, because the credit would be indexed to inflation to help families keep pace with rising expenses.

Unlike the 2021 expansion, which gave families monthly checks for six months, this credit would come only at tax time as a lump sum.

The Center on Budget and Policy Priorities projects that this policy would boost benefits for 16 million kids. That’s more than 1 in 5 of the nation’s 72 million children.

Families who would not otherwise have to file their taxes will need to do so to claim the child tax credit. In our own research, we found that almost 25% of lower-income families didn’t receive any of the monthly child tax credits, perhaps because they didn’t file their taxes.

For parents who worked in 2023 and have kids younger than 17 who live with them, it may be worth filing taxes in 2024.

What’s the rationale for this expansion?

Raising children can be very expensive.

Consider a mother who is working year-round in a full-time, minimum-wage job who has two kids. Assuming she earns the federal minimum wage of $7.25 an hour, she would earn just over $15,000 each year. Once she pays her rent, food and utility bills, she likely has very little money left for other important expenses like child care or school fees.

For this woman, getting a bigger check at tax time could really help her make ends meet. This new plan would nearly double her child tax credit from about $1,875 to $3,600.

There’s also widespread support to expand the child tax credit because the 2021 child tax credit lifted 3 million children out of poverty.

Many researchers, including us, have found that most families with low incomes spent the 2021 credit on bills, rent, food and clothing.

We also determined that the expanded child tax credit made parents less anxious and depressed.

Who wants this expansion to go into effect?

In the past, bipartisan coalitions have voted to expand the child tax credit. Republicans and Democrats alike have proposed making it more generous over the years.

The current expansion also has bipartisan support, even though progressive lawmakers would have preferred a return to the 2021 version of the credit, which was larger, available to more low-income families and disbursed in monthly installments.

Some conservatives worry that bigger credits make people less likely to work. There’s not much evidence to support that claim.

Instead, there’s ample evidence that the 2021 tax credit expansion didn’t make parents less likely to earn money.

And it’s important to remember that families will still have to work in order to receive any benefit from the child tax credit under this proposal.

How long would the expansion last?

To be clear, there is no guarantee that Congress will approve this measure. It’s part of a larger array of tax changes subject to other partisan battles.

Should Congress pass the tax package and Biden sign it by Jan. 29, American families would be able to claim this expanded credit in 2024 on their 2023 taxes.

Even so, this expansion would be short-lived. The current child tax credit is slated to become smaller after the 2025 tax year unless Congress takes further action. It’s one of the many 2017 tax reforms that will expire in 2026.

After that point, the child tax credit will decline to a maximum of $1,000 per child.

Natasha Pilkauskas, Associate Professor of Public Policy, University of Michigan and Katherine Michelmore, Associate Professor of Public Policy, University of Michigan

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Details

Written by: Lake County News reports

Published: 23 January 2024

Law enforcement, business representatives and legislators assembled today to urge support for AB 1772, a measure that would require jail time for repeat theft offenders.

Assemblymember James C. Ramos (D-San Bernardino) introduced the proposal on Jan. 3 when the legislature reconvened for the new year. Quickly signing on as joint authors were Avelino Valencia (D-Anaheim) and Devon Mathis (R-Tulare).

AB 1772 calls for jail time of one to three years for theft crimes depending upon the circumstances; offenses would include grand theft, theft from an elder or dependent adult, theft or unauthorized use of a vehicle, burglary, carjacking, robbery, receiving stolen property, shoplifting or mail theft.

“It’s time for us to reverse the spikes in theft crimes since the pandemic,” Ramos said. “Our law enforcement members and district attorneys need additional tools such as AB 1772. We must reverse the trend before the problem grows worse. Last year I requested a state audit of the impact of Prop 47 on Riverside and San Bernardino counties. The findings are expected later this spring.”

He cited a Public Policy Institute of California September 2023 report. “The study reported that the 2022 rates for commercial burglary rates had increased by almost 16 percent compared to 2019. The PPIC also reported that shoplifting in 2022 had increased by nearly 29% from the pandemic years.”

Valencia said, “I am proud to join Assemblymember Ramos as a joint author on AB 1772. Our communities are experiencing an increase in retail crime and deserve appropriate action from their legislators. According to the PPIC, Orange County has experienced a 54% increase in commercial burglaries. This outrageous statistic demonstrates our current laws are out of touch and are not serving as a deterrence.”

He added, “Stricter penalties are needed to support our business community who is the backbone of our economy. It is time to revamp our laws and hold thieves accountable for their actions. Without proper adjustments, California businesses will lose out on profits and customers will end up paying higher costs. Law and order must be restored in our communities, and AB 1772 is a necessary step forward.”

San Bernardino County Sheriff Shannon Dicus, a bill sponsor said, “Thank you to Assemblymember Ramos for leading the charge on AB 1772, critical legislation addressing the surge in retail theft across California, particularly in the wake of the impact of Prop 47. This bill, designed to impose stricter penalties on serial retail theft suspects, responds urgently to the escalating consequences of shoplifting and related crimes on our communities.”

In 2014, voters approved Prop 47 and categorized some nonviolent offenses as misdemeanors rather than felonies. One provision increased the threshold amount for theft misdemeanors from $450 to $950 and did not allow prior such convictions to count toward the new $950 threshold. If Ramos’s measure becomes law, it would become effective only upon voters’ consent at the next statewide election. AB 1772 does not state a new threshold for triggering the increased penalties for retail theft, only the existence of prior convictions on the suspect’s criminal record.

“California’s massive retail theft has hit retailers and consumers hard, and has been corrosive to the safety of our communities,” said Senator Richard D. Roth (D-Riverside), Chairman of the State Senate Business and Professions Committee. “I am proud to co-author Assemblymember Ramos’ AB 1772 to combat rampant retail theft – by focusing on repeat offenders, this bill increases the consequences for those that have refused to course correct, giving law enforcement an important tool to hold serial thieves accountable for their actions, thereby stemming future thefts.”

Joining the event were business community members Orange County Business Council Chief Executive Officer Jeff Ball and Redlands Chamber of Commerce Executive Director Evan Stanford.

Also present but not speaking were law enforcement leaders President Steve Johnson of Los Angeles Professional Peace Officers Association, President of Riverside Sheriffs Association Bill Young, California Reserve Peace Officers Association President Dominic Gamboa and Santa Ana Police Officers Association President John Kachirisky.

AB 1772 supporters who spoke at the gathering included Sacramento Sheriff Jim Cooper and San Bernardino Darren Goodman. Listed as supporters are the California State Sheriff’s Association, City of Riverside Police Chief Larry Gonzalez and Redlands Chamber of Commerce. San Diego County District Attorney Summer Stephan is a co-sponsor.

AB 1772 has garnered bipartisan support in both houses of the Legislature. Co-authors include Juan Alanis (R-Modesto), Josh Hoover (R-Folsom), Tom Lackey (R-Palmdale), Jim Patterson (R-Fresno), Joe Patterson (R-Rocklin), Blanca Pacheco (D-Downey), Tri Ta (R-Westminster), Senators Bill Dodd (D-Napa), Roth and Sen. Kelly Seyarto (R-Murrieta).

The bill had its first hearing in the Assembly Public Safety Committee.

Details

Written by: Elizabeth Larson

Published: 22 January 2024

LAKE COUNTY, Calif. — The National Weather Service issued a flood watch that lasted Sunday night into Monday morning, as steady rain continued to fall across the county.

The flood watch is in effect until 8 a.m., as forecasters were predicting as much as six tenths of an inch per hour into early Monday.

Due to the heavy rainfall in Lake County, the National Weather Service’s Eureka office said the threat of flooding was expected to continue.

Rainfall totals in inches for the 72-hour period ending at midnight Monday based on National Weather Service observation stations in Lake County are as follows:

— Hidden Valley Lake: 2.11.
— Indian Valley Reservoir: 1.89.
— Jerusalem Grade: 3.30.
— Kelseyville: 1.92.
— Lake Pillsbury: 3.0.
— Lower Lake: 2.77.
— Lyons Valley: 2.74.
— Upper Lake: 2.46.
— Whispering Pines: 4.68.

The forecast calls for rain to continue on Monday.

The agency’s long term forecast for the North Coast said a brief lull in the rainy weather is expected as high pressure builds across the area.

“The next bowling ball in the line is forecast to come barreling down the pike bringing more wet
and unsettled weather to the forecast area by Wednesday,” the forecast said.

Showers are forecast to continue through Saturday, with daytime temperatures rising from the mid 50s to low 60s, while the nighttime conditions are forecast to be in the mid to high 40s.

The United States Geological Survey’s gauge on Clear Lake at Lakeport shows the lake’s level is on a steady rise, hitting 4.44 feet Rumsey, the special measure for Clear Lake, just before 11 p.m. Sunday. That’s up by half a foot since Friday.

Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it.. Follow her on Twitter, @ERLarson, or Lake County News, @LakeCoNews.