the Institute for Youth Development (IDJ), an entity that seeks to promote measures to eradicate this problem in Puerto Rico, said that the approval of the federal credit for children or “Child Tax Credit” (CTC) in Congress of the United States today represents an important milestone in the tough battle against child poverty.
According to IDJ estimates, this credit could reduce child poverty to at least 4 percent. In addition, the nature of these credits is that they increase labor participation as they offer relief to many working families. The average income in Puerto Rico is $ 19,097 per year, so one credit per child represents considerable relief.
“We thank the offices of the legislative leadership that have always been working alongside the IDJ to advance these measures. In particular, Majority Leader Senator Chuck Schumer, Senators Marc Rubio and Bob Menendez, Speaker Nancy Pelosi , Representative Nydia Velázquez and Resident Commissioner Jenniffer González, who obtained numerous bipartisan endorsements for the expansion of this Credit on the island, “said Dra. Anayra Túa López, Executive Director of the IDJ. “However, we recognize that there is still work to be done to make this expansion permanent, as the approved benefit only lasts one year for all families and nine years for all working families.”
The legislation states that in 2021 families will receive $ 3,600 for children under the age of six and $ 3,000 for those over the age of six to 18. Payments would be gradually reduced for individuals earning more than $ 75,000 or couples earning more than $ 150,000. As part of the exemptions from the COVID relief package, any family that has not earned admission in 2020 will be the beneficiary of this credit per child this contributory year.
“The extension of the Child Tax Credit to all families with children in Puerto Rico is one of the public policies that the IDJ has been promoting, but the work does not end here. We will be monitoring the implementation of this measure to ensure “On the other hand, the rest of the public policy agenda that we have drawn up and presented in the country is pending. A measure alone does not solve the problem of child poverty”, Brayan Lee Rosa Rodríguez , Public Policy Manager of the IDJ.
As detailed, Puerto Rico will receive congressional reimbursements for the expansion of the EITC. Also, if it chooses to expand its current EITC, the Treasury will provide a consideration of up to three times the current cost of the EITC of Puerto Rico which would result in an increase in labor participation and provide tax credits to all members of the labor force. Both the CTC and the EITC are poverty reduction measures that have been enacted by the Youth Development Institute in its proposal to halve child poverty in Puerto Rico in 10 years.
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