By Marcus Evans, Jr.
These days, it is harder than ever to make ends meet for hardworking families in Chicago, particularly in our city’s Black communities.
Rapidly rising costs have exacerbated longstanding inequity and injustice rooted in our city’s historical and contemporary actions, such as redlining and discriminatory housing policies that stagnated Black homeownership rates and kept significant investment away from the city’s Black community.
Through redlining, banks declared certain areas as hazardous and unworthy of loans, and restrictive covenants, racist property managers and landlords, and homeowner associations kept Black families away from the city’s most attractive neighborhoods. In the end, Black families were essentially barred from qualifying for home loans and left unable to build generational wealth.
Families like mine were left essentially barred from qualifying for loans for homeownership and were not able to build generational wealth. As of last year, there are 90% more Black Chicagoans in redlined areas than in surrounding neighborhoods. It’s no wonder that a recent report put Illinois as the worst state in the nation for racial financial inequality.
We must take action to make it easier for Black Chicagoans to thrive, and our government can play a major role by helping more Black families keep more money in their pockets.
That’s why I have proposed the creation of a permanent Child Tax Credit (CTC), which would give Illinois parents who earn at or below the median income a $300 tax credit per child.
This is not a novel idea; a Child Tax Credit is a sensible, proven policy that would redirect state dollars to hardworking families across the state.
This policy will have a monumental impact on all communities, especially Black and Brown communities. Preliminary estimates provided by the Institute of Taxation and Economic Policy (ITEP) and Economic Security Project show that 60% of the money set aside by the new credit would go directly to Black and Brown families.
We can also look to a recent policy experiment that also proves just how effective a CTC can be. When the federal government enacted a national child tax credit during the COVID-19 pandemic, it cut child poverty in half. Unfortunately, after that policy was not renewed in 2022, poverty figures for children have continued to rise. Right now, Congressional leaders are pushing for a new federal Child Tax Credit. Fourteen other state legislatures have passed their own CTCs, and I believe that Illinois should be the fifteenth.
This investment would have a deep impact on the state’s working families.
In 2021, 91% of low-income families used their CTC payments to cover basic necessities such as food, education and housing. Parents in my district told me they used their enhanced tax refunds on school supplies, clothing and tuition for their children.
Across the nation, I have heard stories about how the federal Child Tax Credit exposed families to opportunities that previously felt out of reach. The credit gave parents more resources to enroll their children in extracurricular and after-school activities, such as tutoring, sports, arts, and mentoring. These extra resources were vital in connecting more Black and Brown families to programs that our communities too often find lacking or missing entirely.
The Child Tax Credit I’ve proposed alongside my colleagues and with the support of over 40 statewide organizations would also indirectly benefit small and large businesses across our state.
Research has shown us that 80% of tax refund checks are redirected to local businesses through purchases at local stores. In fact, a recent study conducted by the Illinois Economic Policy Institute has demonstrated that a CTC would generate close to $1 billion in new economic activity in Illinois.
Most importantly, if we can create a state CTC, we can give all families the tools they need to build financial stability, establish generational wealth, and contribute to undoing the legacy of ineffective, racist policies that were designed to keep Black people on the lowest rung of society. A Child Tax Credit would be a tool for families to build financial stability and work to undo this pernicious legacy.
If we want a Chicago where Black families can flourish, we need to address the economic challenges faced by our Black and Brown communities. Creating a Child Tax Credit is a major step to doing just that: in one fell swoop, we can right the wrongs of the past, invest in historically disenfranchised communities, and create meaningful opportunities for families to rise.
Marcus Evans, Jr. is the state representative for Illinois’ 33rd district.
The opinions expressed in this column are the writer’s and do not necessarily reflect those of The Chicago Defender.
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