A permanent CTC expansion, a goal expressed by many Democratic lawmakers, would have the unintended consequence of reducing employment.

The $1.9 trillion American Rescue Plan provides economic relief to households through the tax code. We have created a web application to help users explore how ARP will impact their 2021 federal tax liability.

In this report, we analyze the budgetary, distributional, and incentive effects of current-law child tax benefits and evaluate recent proposals to further expand the child tax credit.