A new bill is the latest effort by Ohio Democrats to support low-income families through a tax credit. The “Thriving Family Tax Credit” would create an annual refundable tax credit for middle and low-income Ohio families with children under the age of 18. Proponents believe this legislation would help to lift families out of poverty and allow them to thrive.
State Reps. Casey Weinstein (D-Hudson) and Lauren McNally (D-Youngstown) proposed the bill in the Ohio House. They spoke about House Bill 290 at a press conference.
Representative Weinstein said, “I strongly believe that all families, regardless of zip code, should be able to succeed in our state. Providing a benefit such as the Thriving Families Tax Credit allows parents, grandparents, and caregivers to determine what is best for their budgets and their children’s needs.”
“Ohio families are asking for help, and the Thriving Families Tax Credit sends a strong message that we are listening,” said Rep. McNally. “If we really want Ohio to be the best place in the country to raise a family, then we need to start putting families first.”
If passed, families could get up to $1,000 for each child younger than six years old, and $500 per child ages six to 17. Families earning less than $65,000 annually would qualify for the full benefit amount, according to the sponsors. Benefits would phase out for families earning between $65,000 and $85,000 annually.
Progressive advocacy group, Policy Matters, strongly supports the proposed legislation. A recent report highlights the potential benefits of the legislation including reducing barriers to prosperity and combating inflation and rising costs of child care.
“Ohio families continue to grapple with increasing prices,” Policy Matters Researcher Will Petrik said. “Tax credits are effective because they put cash directly in parents’ and caregivers’ hands, so they can make decisions about how to address their family’s immediate needs. We know it works, but too often, politicians choose to give tax giveaways to corporations and the wealthiest Ohioans. Now, as state lawmakers begin the debate about the future priorities of Ohio during the next two-year budget, Ohioans should come together and push their representatives to include a thriving families tax credit.”
The bill is currently in committee in the Ohio House. Ohio voters can contact their representatives for more information.