Hillary Clinton is proposing a policy to tackle deep poverty

On Tuesday, Hillary Clinton unveiled what is arguably among the most important policies she’s announced during her entire presidential campaign. It is an ambitious but politically attainable plan that will lift huge numbers of families with children out of poverty. It is targeted exclusively at the poor, and the extreme poor in particular, with no money spent on the middle class or rich.

Specifically, Clinton is calling for a change in the refundability threshold of the child tax credit. That sounds like a technical change, but it has tremendous ramifications. Currently, the poorest American families can’t claim the credit, which is a mainstay of the tax returns of most middle-class families. That’s because households that make less than $3,000 a year — the truly, desperately poor — are excluded entirely, and households making under $9,666.67 can’t get the full credit.

Clinton would change the law so that families start getting the credit with the first dollar they earn. That would effectively increase the tax refunds of the poorest families with children. In addition, Clinton would double the credit for children 4 and under, something that helps both poor and middle-class families with young kids, and she’d make the credit phase in much faster for families with kids in that age range.

An analysis by Chuck Marr and Chloe Cho of the Center on Budget and Policy Prioritiesestimates that Clinton's plan will lift 1.5 million people above the poverty line, and bring another 9.4 million closer to the poverty line. It would increase the incomes of 5.2 million people living in deep poverty.

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