Share “House votes to boost child tax credit for...”

House votes to boost child tax credit for some

Published on NewsOK Modified: July 25, 2014 at 2:51 pm •  Published: July 25, 2014
Advertisement

WASHINGTON (AP) — More families with higher incomes could claim the popular child tax credit under a bill that won approval Friday in the House. But in a dispute that divides Republicans and Democrats, millions of the poorest low-income families would still lose the credit in 2018, when enhancements championed by President Barack Obama are set to expire.

The bill would gradually boost the amount of the $1,000-per-child tax credit by tying it to inflation, so it would go up as consumer prices rise. It also aims to make a dent in illegal immigration by prohibiting people without Social Security numbers from claiming a portion of the credit reserved for low-income families.

With nearly all Republicans voting in favor and most Democrats opposed, the bill cleared the House by a vote of 237-173. The White House threatened to veto the bill, though the Democratic-controlled Senate is unlikely to pass it.

About 37 million taxpayers claimed the credit in 2012, reducing their tax bills by nearly $57 billion.

House Republicans say the bill would strengthen the tax credit by increasing it as inflation rises, and by making it available to even more middle-income families. "It is time we make some simple improvements to the child tax credit, so it keeps up with the cost of raising children," said Rep. Dave Camp R-Mich., chairman of the tax-writing House Ways and Means Committee.

The White House said the bill favors high-income taxpayers over the poor, while adding $90 billion to the budget deficit over the next decade.

Five million of the poorest low-income families would lose the credit in 2018, the White House said. An additional 6 million low-income families would see the amount of their tax credits reduced.

"The new Republican rhetoric on poverty is no match for the deeply troubling actions they have repeatedly taken, and continue to take, with this legislation today," said Rep. Sander Levin of Michigan, the senior Democrat on the Ways and Means Committee. "This bill leads to harm for millions of low- and middle-income families and their children."

House Republicans dispute the Democrats' argument, saying the bill is silent on low-income families. Current law calls for Obama's enhancement for low-income income families to expire. The bill simply lets it happen. "The opponents make a false claim, that somehow this bill eliminates benefits for millions of low-income families," Camp said. "That's just wrong."

Under current law, the child tax credit is gradually reduced and phased out for individuals making more than $75,000 a year and married couples making more than $110,000 a year.

House Republicans say the income limit for married couples amounts to a marriage penalty because it's less than double the limit for single tax filers.

Continue reading this story on the...