As Ohio lawmakers in the conference committee work to reconcile differences between the House and Senate budget proposals ahead of a vote expected next week, advocates for children and low-income families are urging the reinstatement of a $1,000 child tax credit for kids under seven—originally included in Governor Mike DeWine’s budget plan. However, the credit’s return appears unlikely.
“Other than the governor, at least among the legislature, I haven’t heard anybody who was interested in bringing the idea back,” said House Speaker Matt Huffman (R-Lima).
The House removed the child tax credit, which had been proposed to be funded by a cigarette tax increase projected to raise around $900 million over two years. This tax hike had the support of advocates focused on low-income Ohioans, young children, and cancer prevention. However, Republican leaders opposed any tax increases in this budget cycle. Huffman also expressed skepticism about the credit’s overall impact.
“I don’t think it’s a tremendous tax break to many Ohioans. It’s great, obviously, for the folks who can take advantage of it. I also don’t think that $1,000 is necessarily going to change the lifestyle,” Huffman said. He added that Ohio’s tax policy favors broad-based, low-rate taxes that do not distort behavior, citing the commercial activity tax as an example.
In contrast, Lynanne Gutierrez of early childhood advocacy group Groundwork Ohio emphasized the credit’s importance for many working families.
“Consider a family in Columbus—mom and dad. Dad’s a construction worker. Mom picks up part-time shifts at a grocery store. They bring in maybe $46,000 a year,” Gutierrez explained. “If they have two kids under six, they get a $1,000 child tax credit under Gov. DeWine’s proposal. That’s $2,000 back on their taxes, increasing their income by 4%, which could cover rent or a couple months of groceries.”
Groundwork Ohio is lobbying lawmakers to restore $1.3 billion in cuts affecting young children and families, including the child tax credit, expanded child care eligibility, Medicaid coverage for children under four, and investments in maternal and infant health.
Gutierrez criticized recent Senate proposals for income tax cuts that largely benefit families earning above six figures, leaving working families feeling overlooked despite carrying the greatest financial burden.
Governor DeWine has maintained that the child tax credit is the only tax cut he supports.
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