Op-Ed: Boosting tax credits for working families helps us all

Inflation and affordability have been top of mind for most American families. For those with young children, and low-income working residents, the rising cost of living is especially burdensome in high-cost states like New Jersey.

In a state with the highest population growth rate in the Northeast, financial stability and economic expansion must remain priorities — and practical, proven solutions are within reach. I urge state leaders to approve funding to expand the Child Tax and Earned Income Tax credits, as that’s one of the fastest and most effective ways to help families stay, work and thrive in the Garden State.

In the last decade, New Jersey has seen a 12% increase in the number of households while the population of families in need also has grown. Fifteen percent of New Jersey families live in poverty, and ALICE families — Asset Limited, Income Constrained and Employed — have increased 27%. Those in the ALICE category struggle to afford essentials like food, housing, child care and transportation.

Credit: United Way Greater Newark

Stagnant wages and rising living costs curb financial stability, leaving families one crisis from financial ruin. While existing state programs like the child and earned-income credits provide critical support, many households remain ineligible. As part of Gov. Mikie Sherrill’s affordability agenda, the state would expand those credits to support working families and low-income residents.

The child credit provides families up to $1,000 annually for each youngster under 6 years old. If the age limit were 12 and the benefit raised to $1,500, more families could be lifted from poverty. The income tax credit distributes a maximum federal benefit of 40%, and boosting it by just 10% could make a world of a difference for families in need, with cash delivered directly.

These proposed changes aim to provide long-term financial stability. Broader tax credits would benefit nearly half of New Jersey children and their families.

The time to act is now.

The extension of the Child Tax and Earned Income Tax credits would lower everyday costs, improve affordability and strengthen working families and individuals who are the backbone of our communities. The additional support could make a difference in whether a family can afford additional groceries, pay their rent in advance or even start savings accounts.

This isn’t just smart economic policy — it’s a statement of our values. When we invest in families and working residents, we invest in a stronger, more stable future for everyone.