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Child Allowances vs. Child Tax Credits

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Child Allowances vs. Child Tax Credits

Pairagraph April 8, 2021
Urban PolicyTax & Budget
OtherChildren & Family

There is an important difference between child allowances and tax credits. The former is long-term free government money; the latter allows families to keep more of what they’ve earned. This distinction is at the heart of fundamental governing questions related to agency, duty, and power.

A child tax credit begins properly, with income—parents working to support their families. It recognizes that parents of younger children are generally not yet in their prime earning years but have elevated expenses. Tax credits allow them to retain more income. This supports families while preserving the governing principle that individuals, families, and communities should be responsible for and have control over the foundational elements of their lives

Continue reading the entire piece here at Pairagraph

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Andy Smarick is a senior fellow at the Manhattan Institute. Follow him on Twitter here.

Photo by AnthonyRosenberg/iStock

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