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Last week, House Republicans narrowly passed the "Big Beautiful Bill," promising bigger tax credits for working families—on paper. But the fine print tells a different story, especially for Black households. At stake: the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC), two policies that have historically served as lifelines for low-income communities.
The new proposal would reduce eligibility for families in immigrant households, stripping the CTC from about 4.5 million children. It also adds new documentation barriers to accessing the EITC, a benefit that disproportionately supports Black working-class families. These changes would not only gut access to much-needed relief, but also deepen the racial wealth gap and heighten financial vulnerability for already under-resourced communities.
The IRS already audits Black taxpayers at rates up to four times higher than white taxpayers—largely due to EITC-focused enforcement. This plan adds insult to injury, making it even harder for honest, struggling families to get the help they’re owed. At a time when inflation continues to stretch household budgets and essentials like rent, gas, and groceries remain expensive, these tax credits are not just helpful—they're essential.
In Chicago, where many Black residents rely on these credits to balance budgets, the impact could be severe. Experts warn that the rollback of pandemic-era CTC expansions—which temporarily slashed child poverty rates—could bring those numbers right back up. In 2021, expanded tax benefits helped lift over 400,000 Black children out of poverty nationwide. This bill could undo that progress almost overnight.
Advocates argue the plan is a step backward. “This isn’t just bad policy,” says one local economist. “It’s targeted harm, packaged as reform.” They note that reducing access to credits is a form of structural racism that’s often overlooked in policy debates. While some lawmakers tout fiscal responsibility, others see these cuts for what they are: barriers disguised as bureaucratic “streamlining.”
The 2021 expansion of the Child Tax Credit was one of the most effective anti-poverty measures in recent history. It reduced child poverty by nearly half in its first year and brought tangible relief to families who used the extra income for groceries, rent, childcare, and school supplies. That success story, however, has faded from headlines as policymakers retreat from pandemic-era safety nets.
Now, with this new House bill, we’re seeing a reversal of progress—one that disproportionately punishes Black and brown families already facing structural barriers to economic mobility. The idea that these tax cuts are “pro-family” is a political sleight of hand. They reward wealth and penalize poverty, further entrenching a system in which access to basic needs is conditional and selective.
The requirement for new documentation to claim the EITC also raises concerns about accessibility. Not all workers have the time, resources, or digital literacy to track down and upload complex tax forms. Language barriers and fear of government overreach—especially in immigrant communities—only compound the issue. For many, these new hurdles will function as silent disqualifiers that push them out of the system altogether.
And while the legislation moves forward, public discourse around tax fairness remains shallow. Few mainstream outlets are highlighting how the bill could reignite racial and economic disparities. Instead, the focus is on political wins and losses, leaving the human cost out of the conversation. This lack of coverage reinforces a dangerous myth: that tax policy is neutral, when in fact it often reflects and reinforces existing inequities.
What’s needed now is not just resistance in the Senate, but a shift in how we talk about tax policy. It’s not abstract. It’s about food on the table, heat in the winter, and whether children can learn without the stress of survival. It’s about whether a Black mother on the South Side of Chicago has to choose between paying rent or buying shoes for her child.
The stakes are high. If passed, this bill could undo years of progress in fighting child poverty and widen the wealth divide at a moment when working families can least afford it. The Senate has the power to reject this regression—but they need public pressure and political courage to do it.
For Black Chicagoans, this fight is personal. It’s about justice, equity, and the promise that hard work should be met with dignity, not more red tape. The nation’s tax code shouldn’t be a barrier to survival. It should be a tool for uplift—and that starts by protecting the people who need it most, not cutting them off when they need it most.