Child tax cuts

Since the US has a progressive income tax system (high earners pay a higher percentage) it is expected that any tax increase will have a greater effect on the rich as will any tax decrease. The Trump tax cut of 2017 was just extended in the Big New Bill. This helps low-income people the most on a percentage basis but not on a total tax basis. Here is a chart showing tax savings at different incomes for a family of four Income Tax savings $75,000 $2,700 $120,000 $3,600 $180,000 $5,200 $500,000 $4,800 The big help for low-income families was raising the child tax credit from $1,000 to $2,000. An easy and convenient way to help the lower income groups is to increase the child tax credit to $5,000. This would cost the government $250 billion per year but almost all of the money would go to low-income groups, that is families’ earnings less than $100,000 per year.