The federal government’s child tax credit just had its 25th anniversary, but not everyone is celebrating. Some conservatives think it’s a runaway entitlement program. A few on the left would rather redirect the money elsewhere. Advocates, meanwhile, want to expand it — but don’t agree on how.
The critics are mostly wrong. But its supporters risk letting their conflicting ambitions obscure what matters: The credit is shrinking in value, and protecting it ought to be the top priority.
The disagreements among supporters reflect the tax credit’s multiple purposes. It is a way to fight child poverty and to deliver middle-class tax relief. It helps parents meet the needs of children. It rebalances the burden of government among adults without minor children, parents of small families, and parents of large ones. Some supporters hope the credit will mitigate the plunging birth rate.
