Sunday, March 20, 2022 | 2 a.m.
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I recently became an accredited teacher, and also run my own mobile business. But with Nevada gas prices above $4.30 per gallon, it has been hard to keep up with overhead.
Last year, the extended child tax credit brought in $750 per month for my three children and helped us cover the bills, but now I worry about staying afloat in this economy. Families need the monthly tax credit to be renewed in 2022. We saw 4 million families set to rise above poverty because of this program and now, without the monthly payments, we will be cast backward as a nation.
The child tax credit was reformed in 2021 to better distribute the tax returns families are due each year. This ensured that the funds would be used for budgeting monthly expenses, instead of once-annual luxury purchases — a huge benefit for families who normally have less income. The credit was also made to be fully refundable, meaning the funds do not have to be paid back if tax liability is low or even zero. Families like mine could spend the credit on the various rising costs of living — gas, groceries, bills or rent — without fear of having to pay it back.
With inflation at a 40-year high, a record 7.9%, it is clear that the necessities weigh on parents’ minds. A study from the Center on Poverty and Social Policy at Columbia University shows that of the parents who spent their child tax credit money, more than half spent it on groceries, with another 36% spending it on essential bills.
As of Jan. 4, I became a newly licensed teacher. From September to October 2021, I was working as an unpaid intern in order to make this transition happen. It was during this time that the tax credit really shined brightest. I was able to focus on developing my career without worrying whether I could put food on the table those months. Having a reliable payment each month to bridge this gap gave me the confidence to continue my journey in teaching, knowing that my children wouldn’t go without the basic necessities like rent, transportation or food.
I pride myself on my small business, working as a mobile skin care professional. In fact, without the monthly child tax credit payments, I would say this business may have never gotten off the ground. I needed the financial reassurance it provided me to take that chance and invest in our future.
I am not the only parent who used this program to take the leap of faith, as nearly 3% more low-income households (a total of 300,000 families) became newly self-employed when the monthly payments began. However, with the outrageous gas prices in Nevada, the cost of driving to my clients is debilitating. This is after the pandemic decimated any potential I had to grow my business further during the shutdown.
If the monthly payments were to continue I would feel more confident about investing in my business, knowing I have the funds to mitigate the inflationary prices.
It is clear that parents like myself have to face the skyrocketing cost of living, with or without this program. Many were just beginning to taste some freedom from financial stress amid the last tax credit payments in December, before the door was slammed in their face.
We must ensure that parents do not lose hope, so they can provide better lives for their children. I ask our senators, Catherine Cortez Masto and Jacky Rosen, to push for compromise and renew the monthly child tax credit — in any form possible. Now is the time to invest in the future of our children and our nation. We still have a chance to relinquish the grasp of poverty on our community, before inflation drags us deeper.
Cassandra Jones is a Las Vegas resident.
