Economists and executives are forecasting that child tax credits will be extremely beneficial to retail companies.
As part of the American Rescue Plan, families began receiving monthly child tax credits in July.
“Here’s the great news: you won’t have to wait until your next year’s tax return to get that break,” President Biden said in May. “I’m announcing today that on July 15th and on the 15th of every month thereafter throughout the year, you will get deposited in your bank account, half of your tax cut, at least $250 per child each month, a direct deposit into your account. So if you’re a working family with two kids, you’re going to get $500 a month into your bank account on the 15th of every month starting in July.”
Many retail companies are therefore expecting a significant boon to their earnings. As CNBC reports:
Dollar General Chief Financial Officer John Garratt said on a first-quarter earnings call in late May that the discounter did