ONC Reporting –
Ohio lawmakers are considering a proposal that would implement a statewide refundable child tax credit.
Regional food banks say the bill would help more families meet basic needs and reduce strain on local food pantries struggling to meet demand amid persistent inflation.
Sarah Kuhns with Ohio Association of Foodbanks says eight in 10 Ohioans are relying on food banks because of high prices, and are being forced to choose between groceries and paying for basic needs such as utilities, medication and transportation.
She says tax credits have proved to be effective for helping families reach financial stability.
“We saw during 2021, when the federal child tax credit was being paid out monthly to families, we saw a decrease in the number of households with children that we were seeing in our lines.”
According to data from the Economic Policy Institute, federal child tax credit payments reduced child poverty to the lowest level on record, impacting more than three million kids nationwide.
The Thriving Families Tax Credit was introduced last fall by State Representatives.
It would provide a benefit of up to one thousand dollars per child for kids younger than five, and up to five hundred dollars for children aged 6 to 17. Families earning less than 65-thousand dollars annually would qualify for the full benefit amount.
Kuhns says households of color and those from marginalized communities have been hardest hit by inflation.
“It also means leveling the playing field, 83.7% of family blocks, Black families, and 79% of Hispanic families in Ohio would receive at least some of the tax credit from the Thriving Families Tax Credit.”
A 2023 statewide survey of Ohio by the Ohio Association of Foodbanks found 68 percent of households had to choose between purchasing food and transportation or gas.