Child Tax Credit - One Minute
Mr. Speaker, I rise today to discuss the recent misrepresentation of the Jobs and Growth package passed by Congress before the Memorial Day Recess.
Many of our friends in the press and on the floor have been claiming that this growth package is nothing but a tax cut for the wealthy. Well that’s just plain ridiculous!
According to the Joint Economic Committee, this new tax bill provides the largest percentage reductions in the income taxes of low and middle-income groups, thereby shifting the tax burden upward.
The Jobs and Growth Tax Act exempts another three million workers entirely from federal tax liability. And, low-income families, in particular, benefit from this economic growth and tax relief package through a number of provisions:
· The acceleration of the expansions of the ten-percent rate bracket-this means that workers can earn more before they get moved into the 15% and 25% brackets;
· The standard deduction for joint filers
· The accelerated increase in the child tax credit to $1,000.
Accelerating the expansion of the child tax credit will provide 26 million families with an average tax cut of $623. This can mean a great deal to a family of four working to make ends meet each year.
Even families who do not owe taxes may benefit from the increase in the child credit to $1,000 because of the current refundable feature of the credit.
So, some may ask, who will benefit from this credit?
Forty-four million children will benefit and some will receive larger refundable credits because of the new law. This party has not left millions of children out in the cold. Don’t be fooled when certain groups don’t explain the whole story. Some low-income Americans are not included in this credit because their family income is so low and they qualify for other more beneficial anti-poverty programs.
I remember weeks ago when folks on the other side of the aisle opposed a tax cut of any kind during debate on the Growth bill. Now some are arguing that the tax cut wasn’t large enough for families who don’t pay income taxes in the first place.
I believe some need to figure out where they stand.
