It’s no secret that New York City is grappling with a major affordability crisis. And perhaps no one is feeling the pinch more intensely than families with children. The cost of raising a family here has become so punishingly high that families with children aged six or younger are twice as likely to move out of New York City as others.
When that happens, the negative impact ripples out far beyond the families themselves. It means a weaker economy and less support for local businesses in places like Queens and Brooklyn. And of course, even families who stay are struggling to afford essentials like groceries, clothing, and school supplies.
To tackle the affordability crisis and ensure our economy is strong for years to come, we need our state government to take action to ensure families can afford to put down roots here and afford the things they need to raise children. Thankfully, the state legislature has proposed a policy that can do just that.
The Working Families Tax Credit, sponsored by State Senator Andrew Gounardes and Assembly Member Andrew Hevesi, combines and expands existing tax credits to give families up to $1,600 per child annually. The benefit would be paid out in quarterly installments instead of once per year, so families get money when they need it. And it would be pinned to inflation, so support for parents will grow even if costs rise.
What does that mean for New Yorkers? More money to pay for essentials. The Working Families Tax Credit would cut deep child poverty by 22% statewide. But it also has major implications for regional economies and local businesses. One analysis found the proposal would increase the net income of more than a third of the state’s residents, and research shows the policy would generate $1.5 billion in direct economic benefits annually to New York City alone.
That’s money that would be spent overwhelmingly at small and mid-size businesses throughout the city, bolstering local economies and sustaining jobs. And when families have financial security, businesses benefit from a more stable and engaged workforce. The WFTC is a business-friendly solution that meets families where they are and strengthens the labor pipeline. At a time of incredible economic uncertainty and rising costs for businesses, that sort of support is a crucial lifeline.
The proposal has support from both Democrats and Republicans, as well as from a wide variety of social service providers and economic development organizations. The policy is also identical to the top recommendation of the Governor’s expert Child Poverty Reduction Advisory Council.
The Governor has proposed more modest expansion to the existing child tax credit. While we’re grateful that she’s made affordability a top priority, we need bold action to truly meet this moment. A family of four with a toddler and school-age child that earns $90,000 annually, for example, receives just $660 under current tax policy. Under the governor’s current proposal, they’d get $1,500. But under the Working Families Tax Credit, they’d receive at least $3,000.
The Working Families Tax Credit is an opportunity to deliver game-changing support to families while bolstering local businesses in Queens, Brooklyn and beyond. We hope New York’s leaders will seize it.
Thomas Grech is the President & Chief Executive Officer of the Queens Chamber of Commerce. Randy Peers is the President & Chief Executive Officer of the Brooklyn Chamber of Commerce.
