Analysis: Bigger child tax credit helps rural economies most

Child Tax Credit as a share of regional GDP
(Niskanen Center chart)

The newly expanded Child Tax Credit will drive $27.6 billion in new household spending, support more than half a million new jobs, and disproportionately help rural economies, according to a new analysis from the Niskanen Center, a moderate D.C. think tank.

The credit began paying out an advanced monthly tax refund of up to $300 per child on July 15, and has reached an estimated 60 million children in 39 million households. Though the policy is only authorized for one year, it's expected to reduce child poverty by 40 percent, the report says.

But less attention has been paid to how the refund can stimulate local economies through increased consumer spending. Niskanen estimated that economic impact by state and congressional district.