Testimony in Support of Expanding the Child Tax Credit

Chair Davids, Chair Gomez, and members of the Committee:

My name is Maggee Hangge and I am the Assistant Director for Family Policy at the Minnesota Catholic Conference, the public policy voice of the state’s bishops.

I am here today to applaud you for including a baby bonus as an increase in the state Child Tax Credit in Article 1, Section 9 of the DE Amendment. We are pleased to see that you are putting a portion of the your small budget target and the state’s resources where it is needed most—back into the pockets of our families, especially those with infants. Many agree that the Child Tax Credit is a valuable tool for Minnesota families, and the Legislature once again has an opportunity to strengthen this program.

The thought of bringing a child into this world can be daunting. A recent survey found that parents spend more than $20,000 during a baby’s first year—not including labor and delivery costs. In that same survey, 26 percent said they are putting off having more children for financial reasons.

Offering those who welcome a new child a $100 bump or “baby bonus” via the Child Tax Credit could help curb some of these fears. It could also help families purchase a safer car seat, for example, instead of using one second hand that could be nearing or at its expiration date.

But families are looking for more relief.

An ideologically diverse set of organizations recently signed a letter urging legislators to expand the state Child Tax Credit. These signatories see the benefit that the CTC has provided, and the opportunity the Legislature has to continue strengthening this program.

That letter is included in your packets.

Although we were grateful to see the baby bonus included, even if smaller form than hoped, we encourage the committee to extend the baby bonus back to the original $400, as was present in the original bill, H.F. 2254. Members could also think creatively about a scaled approach.

We also encourage you to keep in mind HF2339, which expands the phaseout threshold for the Child Tax Credit by 20%. This bill enjoys the support of a growing list of politically diverse authors, including many members of this committee. Expanding the phaseout threshold this would allow the CTC to reach nearly half of our state’s children—that would be a significant investment in our future.

While we recognize that the fiscal outlook appears cloudy, it is in the state’s interest to invest in its families and those doing the hard task of raising the next generation of workers, taxpayers, and productive Minnesotans. Strong families will lead to a strong state—both now and in the future.

Thank you for including a CTC expansion in this bill, and we hope to see more relief for families in the final bill. Thank you.

Maggee Hangge

Assistant Director for Operations and Family Policy