Evaluating the Effects of the 2021 Expansion of the Child Tax Credit: The International Comparative Context

Abstract

We provide an overview of child benefit programs in high-income countries, particularly in comparison to the 2019 and expanded 2021 U.S. Child Tax Credit (CTC). Most countries included in our review provide child benefits that are more generous than the 2019 (and current) U.S. CTC, aligning more closely to the parameters of the now-expired 2021 expanded CTC. We show that while the expanded U.S. CTC was in effect, the U.S. significantly improved its ranking within the Organisation for Economic Co-operation and Development (OECD) in terms of lowering child poverty rates and the effectiveness of its redistribution system on poverty alleviation. Our cross-country analysis further reveals that the refundable and monthly payment structure of the expanded 2021 CTC was in keeping with prevailing models of child benefits internationally.