Economic stability and social justice are vital in today's society. Addressing systemic issues in our financial and social support systems is crucial for the future. This requires thoughtful consideration of policies that impact families, workers, and communities across the nation.
1. Expand the Child Tax Credit (CTC)
Congress must safeguard the Child Tax Credit (CTC) from shrinking by 2025, ensuring it remains a vital tool in combating child poverty. Under current law, the credit will revert from its maximum at $2,000 per child to $1,000, imposing tougher income requirements on low-income families. The temporary enhancements introduced via the American Rescue Plan Act (ARPA) in 2021 were instrumental in reducing child poverty. Expanding the credit will maintain these positive outcomes.
It is crucial that the credit becomes fully accessible to all income levels, so families with the lowest earnings receive the full benefit. Tax credits like the CTC are not handouts; they represent justified refunds of hard-earned taxpayer money, helping mothers keep their households afloat in the face of economic insecurity.
Without action, millions of American families will no longer receive this key support, potentially increasing financial stress and child poverty. Restoring the ARPA improvements is an actionable way to lessen fiscal stress for struggling parents while building a strong economic foundation for the next generation.
2. Reinstate the Enhanced Earned Income Tax Credit (EITC)
The Earned Income Tax Credit (EITC) is one of the most impactful tools in elevating the financial well-being of low-income workers. Its enhancement—particularly for those without qualifying children—was a significant stride towards economic fairness, affecting nearly 11 million workers. These adjustments, made possible through the American Rescue Plan Act (ARPA) in 2021, provided crucial wage subsidies that prevented many from being taxed into, or deeper into, poverty.
Before the enhancements expired, workers without dependent children received meaningful support that strengthened both their financial positions and their capacity to contribute to the economy. The extension of EITC eligibility empowered individuals who typically operate within precarious job markets—restaurant servers, gig economy workers, and others endeavoring to reconcile multiple jobs to make ends meet.
Reintroducing this enhanced credit acknowledges the evolving workforce dynamics and validates the efforts of workers occupying roles essential to our daily lives and economic stability. It's a step towards leveling the playing field, ensuring that the benefits of hard work are more equitably distributed. Reinstating the EITC enhancements would provide support to millions and demonstrate a commitment to reducing economic distress.
3. Reform Unemployment Insurance (UI)
Unemployment Insurance (UI) is a critical lifeline for Americans facing job loss, yet its structure often falls short when economic challenges arise. A comprehensive reform is necessary to transform UI from a stop-gap measure into a more effective shield against economic instability.
Key reforms should include:
- Expanding eligibility to include gig workers, freelancers, and part-time employees
- Extending benefit durations to provide support during prolonged challenges
- Increasing benefit levels to reflect modern living standards
- Implementing universal minimum standards across states to ensure fairness
- Improving financing mechanisms to ensure funds are readily available
These reforms would fortify our social safety net, providing a buffer for families managing the challenges of unemployment. They would also reaffirm a commitment to economic dignity—a promise that no individual should face destitution due to job loss. By securing a well-rounded, equitable UI program, we can enhance economic stability and reinforce a system that protects citizens and bolsters economic justice.
4. Raise the Minimum Wage
Raising the minimum wage to $17 by 2028 would ease financial burdens on approximately 27.9 million workers, significantly enhancing their quality of life. This change is about more than boosting paychecks; it affirms the value of labor and acknowledges the dignity inherent in every job.
Eliminating subminimum wages for tipped workers, teenagers, and workers with disabilities would help dismantle systemic pay inequities. This reform would ensure that everyone—regardless of their job or background—earns a fair, livable wage that reflects the true costs of modern living.
Research suggests that higher wages often lead to:
- Increased consumer spending
- Reduced employee turnover
- Improved loyalty
These factors ultimately benefit businesses in the long run. A fair wage empowers workers, stimulating growth and fostering a thriving economy.
Enacting this wage increase would address historical disparities that disproportionately affect women, particularly women of color, who are overrepresented among low-wage workers. It symbolizes a collective decision to place workers at the heart of economic recovery and progress, driving America towards a future where work provides a dignified life for all.
5. Build Affordable and Accessible Child Care
Investing in affordable and accessible child care is essential to ensuring economic security, particularly for single mothers who juggle multiple responsibilities with limited resources. Child care is a cornerstone for enabling women's participation in the workforce, reducing poverty, and fostering equitable opportunities across communities.
Many mothers find themselves altering work schedules, accepting lower-quality care, or stepping out of employment altogether due to child care constraints. These choices can jeopardize financial stability and limit career progression, perpetuating economic insecurities that disproportionately affect women, especially those living in single-parent households.
"A CAP analysis of the 2016 Early Childhood Program Participation Survey found that when single mothers were unable to find a child care program, they experienced a drop in employment from 84 percent to 67 percent."
Substantial public investment could expand the supply of child care centers, bolster the child care workforce with fair compensation, and implement subsidies that make care costs manageable. Policies like the Child Care for Working Families Act offer a road map to achieving these goals, aiming to keep child care expenses within 7% of family income.
Creating affordable child care environments addresses systemic disparities faced by women, especially those from marginalized communities, by providing an equitable platform for professional growth. It's an investment that pays dividends across society, helping individual families, communities, and the national economy.
By prioritizing these essential reforms, we can pave the way for a more inclusive and resilient economic future that reaffirms our commitment to dignity and equity for all.
- Desmond M. Poverty, by America. Crown; 2023.
- Center for American Progress. The Child Care for Working Families Act. 2021.