Last month, the United States Supreme Court rescinded President Biden’s eviction moratorium leaving millions in jeopardy of housing instability. During the same week, the Mississippi Legislative Tax Study Committee held hearings to discuss changes such as possibly eliminating the state income tax – a move that public policy analysts note would further devastate the budget for our public services and shift the burden onto low income families. Research shows that evictions and eliminating state income taxes can be costly, and if lawmakers want to actually support families and boost local economies, new data proves there are better ways to do that.
As already underfunded public systems are being ravaged by preventable overload from the surge of the Delta variant, now, more than ever, families need support, stability, and strengthened social safety nets that center their voices and experiences.
Infusions of unrestricted cash such as stimulus checks, unemployment benefits, the child tax credit and earned income tax credits, have allowed for families to both support their needs, as well as put significant resources back into their local economies. At Springboard to Opportunities, we’ve seen the powerful impact of giving money directly to families through our guaranteed income initiative, The Magnolia Mother’s Trust (MMT) that provides $1,000 payments to 100 low-income Black mothers every month for 12 months.
If you’ve been a frequent reader of this newsletter, you already know that our data shows that families use these funds to cover bills, create savings and purchase food and basic household goods. This not only supports the well-being of these families, but translates to more money being spent at local businesses, multiplying economic growth in our state.
The expanded federal Child Tax Credit (CTC) has already contributed to a recent boost in added revenue for the state of Mississippi. The CTC which is now fully refundable and coming on a monthly schedule for the first six months, is available to more families than ever before. Recent research conducted by The Niskanen Center and the Institute for Tax and Employment Policy estimates that with these changes, the total impact of the CTC in Mississippi will be over $2 billion, supporting 7,266 full-time jobs, and adding over $18.5 million in new state revenue.
For the families Springboard serves, these funds contributed to timely necessities. Last month, we shared the stories of Annette and I’Esha, who were received their CTC funds at crucial moments when health complications and seasonal employment led to the loss of income. Initially, these mothers had to dig into their savings to keep their families afloat. However, the advanced monthly payments from the CTC have helped them afford basic necessities like school supplies and diapers – items not covered by other public benefits like SNAP or WIC.
Critics of cash programs often chide low-income families by saying they should just save — sentiments also communicated during the hearings by the MS Legislative Tax Study Committee. But mothers like I’Esha were saving. She worked two jobs to ensure that she could meet her family’s needs. Yet, that still wasn’t enough. The realities of working multiple jobs to still not make a living wage, coupled with government policies that are often inherently punitive, demonstrate the very significance of the CTC monthly payments.
Our lives do not exist in isolation. We are impacted by multiple systems and identities. Simply telling someone to “save” without recognition that most people are trying to stay housed amidst widespread housing crises, take care of families, not get sick because they likely won’t be able to afford treatment or could lose a job that doesn’t even pay them enough to live, misses the nuances of our layered experiences, and the greater burden of systemic inequities.
The expanded CTC is one step toward correcting some of these inequities and supporting much needed revenue and spending. When we support our people, everyone benefits.
In the coming weeks, Congress will be voting on a full budget package and while there will be massive numbers, multiple programs, and all sorts of policy jargon being thrown around, we encourage you to keep the stories of those like Annette and I’Esha front and center. We have proof of what works for families and businesses, and here in Mississippi, we’re already seeing the human and revenue benefits.
Let us take this opportunity to finally make a sustainably positive impact on the health, wellbeing, and livelihoods of children, families, and broader communities in this state and across this nation.