President Biden visits Syracuse today to celebrate the deal that will bring Micron Technologies to town; a deal facilitated in part through the federal CHIPS Act – a law that invests in U.S. semiconductor manufacturing, research and development, and workforce through direct federal investment and robust tax credits. Senator Schumer has touted this deal with Micron as one that should put “a smile on everyone’s face in Central New York.”
It is, indeed, an important investment in the economy of City of Syracuse and the region, promising to create thousands of jobs in the region, and to invigorate the local economy.
We also know there are additional ways federal funding and tax credits can boost local and regional economies, strengthen communities, and support hard-working families. One proven strategy is expanding refundable tax credits, like the child tax credit. These credits put money directly into the pockets of low and middle-income families, who in turn, bolster local economies when they spend those dollars at local stores, eateries, and businesses. When the federal government expanded the federal child tax credit during the pandemic, and distributed the credit in monthly payments, local economies across the nation saw a $19.3 billion boost in spending per month.
The child tax credit is among the most effective ways to quickly reduce rates of child poverty. The pandemic-era child tax credit expansion resulted in a nearly 50% drop in child poverty nationally, and here in New York State. Unfortunately, when the expanded credit was allowed to lapse, poverty rates rebounded to previous levels. Federal leaders, including President Biden and Senator Schumer, have backed recent proposals to expand the child tax credit, but to date, those efforts have been unsuccessful.
This failure is particularly devastating in Syracuse, which leads the state as the city with the highest child poverty rate; 46% of children in Syracuse live in poverty. Every child deserves a fair opportunity to get off to the best start possible. The city or ZIP code where a child grows up should not determine his or her chances of achieving success.
We urge President Biden and Senator Schumer to renew their efforts to pass an expanded child tax credit, and put money directly into the pockets of Syracuse families – and families across the nation – who are struggling to make ends meet. We hope that, while they are here in Syracuse, President Biden and Senator Schumer will take a look at the city and communities and understand that economic development means investing in jobs AND in the families and communities that make up New York State. An expanded child tax credit would be the boost to families we need!
To learn more about ending child poverty in New York State visit New York Can End Child Poverty.
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