Governor Dan McKee is continuing to push for the creation of a fully refundable, annual tax credit of 325-dollars per child.
He joined members of the RIght from the Start Coalition Wednesday to highlight the proposal which is part of the Affordability for All agenda in his proposed fiscal 2027 budget.
“The rising cost of living is creating real hardships for families nationwide,” said Governor McKee. “While the Trump Administration’s policies have pushed the price of household goods to new levels at the same time that Congressional Republicans’ policies have slashed our country’s safety net, family budgets need real relief now—that's exactly what my child tax credit proposal delivers.”
While Rhode Island currently offers a dependent deduction, many low-and moderate-income families—who need the financial support the most—do not benefit because the deduction requires sufficient state income tax liability. Approximately 26 percent of filers with dependents have too little state tax liability to benefit, meaning over 30,000 families currently receive no benefit at all. The Governor’s proposal would convert the existing deduction to a new child tax credit that would support all Rhode Island families, delivering approximately $30 million in annual tax relief. If enacted, this would represent one of the most progressive tax policy changes in recent Rhode Island history.
“Federal policies are making it harder for Rhode Island families to keep up with an ever-rising cost of living,” said Josh McCabe, Director of Social Policy at the Niskanen Center. “Governor McKee’s proposed child tax credit is the bold, clear, and fiscally responsible reform that families need right now to make life more affordable in the Ocean State.”
McKee says the Trump Administration's policies have pushed the price of household goods to new levels at the same time that Republican policies have slashed the country's safety net and family budgets need real relief now.
(Photo: Governor McKee's Office)