SALT LAKE CITY (ABC4) – As tax day approaches this 12 months, chances are you’ll be questioning how individuals nationwide and in Utah spent their baby tax credit score. Information from QuoteWizard by LendingTree offers some perception.
Nationwide baby tax credit had been elevated in 2021 by the American Rescue Plan Act, which funded many applications designed for monetary COVID-19 reduction. Relying on the taxpayer, the act elevated the credit score went from granting 2,000$ of tax reduction per baby as much as $three,600 in some instances.
Critics of tax breaks for households and oldsters would possibly marvel if this program designed to assist well being improvement of kids did what it was supposed to. In line with the information from QuoteWizard, almost 80% of individuals used the tax credit score to purchase meals, suggesting a web optimistic impact on American kids. Nationwide averages additionally point out that clothes was the runner up on cash spent, with housing and utilities shut behind.
These traits are carefully mirrored in Utah as effectively. 74% of individuals used the tax credit score for meals, adopted by clothes at 43% and housing at 44%, much like nationwide averages.
This information prompts additional questions on federal COVID-19 reduction applications just like the tax credit score and stimulus packages. Many critics counsel that an inflow of money to shoppers by applications just like the tax credit score could also be contributing to dramatic inflation within the US. Elevated spending on meals in Utah and different states due to the kid tax credit score might contribute to this, and possibly clarify excessive native meals costs.
This being mentioned, it’s exhausting to refute the proof that the kid credit score is doing what it’s supposed to do in Utah and elsewhere within the nation: assist mother and father present their kids with primary necessities like meals, clothes, and shelter.
Whether or not or not future and present mother and father can count on these excessive tax credit to proceed, nonetheless, is unattainable to say