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Tax Credit EXCLUDES Thousands in Maine
MaineToday.Com ^
| Friday, May 30, 2003
| BART JANSEN
Posted on 05/30/2003 8:20:06 AM PDT by fight_truth_decay
WASHINGTON Thousands of Maine families with low or moderate incomes won't qualify for the $400 child tax credit that more-affluent families will receive under the tax cut signed by President Bush. Republican Sen. Olympia Snowe and congressional Democrats criticized Republican congressional leaders Thursday for refusing to make low-wage earners eligible for the increased child tax credit.
In the tax-cut compromise struck by negotiators in a House-Senate conference committee, the increased credit was made available only to families that earned enough to pay taxes. In Maine, that means the parents of an estimated 40,000 children won't benefit from the credit.
"I am dismayed that conferees eliminated the refundable portion of the child tax credit from the jobs and growth package," said Snowe, a member of the Senate Finance Committee who opposed the final version of the tax cut. "This ill-founded decision creates a two-tier system under the child tax credit, penalizing low-income working families who need the help most."
As part of the 2001 tax cut, Snowe insisted that a $600 child tax credit be refundable to families earning at least $10,000. The requirement upset conservative lawmakers because it meant that minimum-wage families got a refund even though they paid no taxes.
This year's tax cut increased the child tax credit from $600 to $1,000 for each of the first two children in a family, but restricted eligibility. Also, the minimum income to claim the credit was raised by $500, to $10,500.
The result is that only families earning enough to pay taxes, or about $26,000, will benefit from the change. Higher-income families are expected to receive checks for $400 per child (maximum of two) in July and August.
Retaining eligibility for lower-income families would have added $3.5 billion to the $350 billion cut over 10 years.
The Center on Budget and Policy Priorities, a nonpartisan group that studies federal legislation, estimated that the change would prevent 12 million children nationwide from qualifying for a credit.
Snowe and Reps. Tom Allen and Mike Michaud, both D-Maine, voted against the $350 billion tax cut, arguing it would expand the deficit without stimulating the economy.
Sen. Susan Collins, R-Maine, voted in favor of the tax cut because it provided $20 billion in state aid, including an estimated $116 million for Maine.
Ari Fleischer, the White House spokesman, defended the tax cut Thursday, noting that it reduced tax rates on stock dividends and capital gains, and speeded up reductions in income tax rates. He argued that 3 million low-wage workers would no longer have to pay taxes at all because of the changes.
"This certainly does deliver tax relief to the people who pay income taxes," Fleischer said.
But Senate Minority Leader Tom Daschle, D-S.D., wrote Bush a letter Thursday urging the president to support legislation that would fix the problem for workers who earn too little to pay taxes.
"I hope the president will agree to reduce the tax breaks for the very wealthy in order to restore this tax relief for hard-working taxpayers who need it most," he said.
Staff researcher Julia McCue contributed to this article
TOPICS: Business/Economy; Culture/Society; Extended News; Government; News/Current Events; US: Maine
KEYWORDS: mikemichaud; snowe; susancollins; taxcut; taxreform; tomallen
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To: goodnesswins
Isn't a "tax credit" for people who PAY TAXES? Some senators are just sooooo stoopid. We, the people, who PAY taxes are NOT quite that STOOPID! You are correct. Furthermore, they call what Ms. Snow is demanding a "social program", not to be confused with a "tax credit"!
41
posted on
05/30/2003 9:35:58 AM PDT
by
Emily RN
To: drjohn_55
Too the DUmmies tax 'cuts' are only ok if in fact they are an entitlement.
42
posted on
05/30/2003 9:37:18 AM PDT
by
finnman69
(!)
To: fight_truth_decay
The result is that only families earning enough to pay taxes, or about $26,000, will benefit from the change.
GASP! How could Bush not give tax breaks to those that don't pay taxes? This article needs an "I'm with stupid" T-shirt.
43
posted on
05/30/2003 9:37:25 AM PDT
by
TSgt
(“If I do my full duty, the rest will take care of itself.” - General George S. Patton)
To: Orangedog
Generally, the custodial parent receives the exemption unless the custodial parent signs a written waiver on an IRS form or on a document that is substantially similar and the noncustodial parent attaches it to his or her return. Taxpayers have lost tax cases in court when trying to rely solely on the divorce decree. Get your ex-wife to sign the IRS form (Form 8332), and attach it to your return for each year you claim an exemption for the child. You can download the form at the IRS Web site www.irs.gov
44
posted on
05/30/2003 9:37:53 AM PDT
by
TheCPA
(Co-author of Tax Stategies for the Self-Employed)
To: Jack Black
She's up for reelection in 2006.
45
posted on
05/30/2003 9:54:08 AM PDT
by
caltrop
To: TheCPA
I'll make sure I do that from now on. I think I'm safe on this one, because I had both legal and physical custody that year during the custody fight. I know that the IRS makes up it's own rules, but by my states laws, the divorce decree states that she is listed as the "residential" parent for school placement purposes only, even though by the systems bogus formula, I have to pay what they say is 85% of what they say it costs to raise a kid. She is "responsible" for the other 15%, but no ones going to make her spend it.
I wonder how this is going to effect the $400 check that will be mailed out this summer. If they go off of last years filing status, she'll get the check because she claimed my daughter (legitimately) for tax year 2002, but tax year 2003 is my year to claim that on my taxes. Do you know if the Infernal Revenue Service has a procedure for keeping that kind of mix up from happening?
46
posted on
05/30/2003 9:58:16 AM PDT
by
Orangedog
(Soccer-Moms are the biggest threat to your freedoms and the republic !)
To: fight_truth_decay
Somebody conservative please run against that RINO Olympia Snowe. I know it's Maine we're talking about but give me some hope!
To: TheCPA
Thanks. I'll pass this along.
48
posted on
05/30/2003 10:02:39 AM PDT
by
stanz
(Those who don't believe in evolution should go jump off the flat edge of the Earth.)
To: fight_truth_decay
Sweet! My less than $45,000/year salary means I'm suddenly "affluent", according to the Left!?
Ring the bell!
Swank City, here I come!
To: goodnesswins
ABCNNBCBS were all spouting this same line last night on their increasing low-rated nightly news programs.
Rush just played a clip of Gloria Borger from CNBC saying that 5 Dem Presidential candidates sent faxes on this very subject-- marching orders to their waterboys in the press.
I sent this to
PeterJennings@abcnews.com Subject: Wonder why your ratings are low?
My Dear Comrade Petrov,
I watched ABC News last night with great disgust, as you began your broadcast bemoaning the idea that people who don't pay income taxes will not get a tax cut.
Today I learned that five Democratic Presidential candidates sent out faxes on that very subject to the media yesterday. So which job title do you prefer, Managing Editor, News Anchor, or Water Boy for the Democratic Party?
As more people realize that the latter is your true job description, your credibility and ratings will continue to plummet.
Send my regards to your Sandanista friends!
To: GeorgiaYankee
There you go...your Sandanista friends... was a nice touch. ;)
To: GeorgiaYankee
Great email
But be sure to send it to your local paper. You would be surprised at how many people not 'politically involved' read the letter to the editor section.
Peter won't listen but you might get the attention of your neighbor.
52
posted on
05/30/2003 10:14:57 AM PDT
by
CyberCowboy777
(In those days... Every man did that which was right in his own eyes.)
To: fight_truth_decay
I'm so sick of these "leechers". It is beyond their comprehension that ONLY taxpayers will receive a tax rebate. I'm also sick & tired of them whining that this tax cut will only benefit the RICH. Where were they when the RICH pay most of the taxes? Guess that doens't bother them at all.
To: fight_truth_decay
I'm going to the store right now and demand a $400 refund for the check I did not mail them.
How far do you think I'll get?
54
posted on
05/30/2003 10:29:45 AM PDT
by
Samwise
(There are other forces at work in this world, Frodo, besides the will of evil.)
To: finnman69
This is true. I happened to be on DU yesterday (don't tell please), and the same group last week whining about the tax cut, are now whining louder because they don't qualify for it!!
What a bunch of hypocrits. They also don't say in most of these articles that this portion was only taken out so the $350 billion mark could be reached. The RINOs refused to sign a bill even $1.00 over that mark.
55
posted on
05/30/2003 10:31:45 AM PDT
by
codercpc
To: fight_truth_decay
i guess that includes all the maine's sudanese or somalians!!!
To: codercpc
I wonder how they have time to be posting on DU via a computer, but don't qualify for tax cuts....
57
posted on
05/30/2003 10:33:23 AM PDT
by
finnman69
(!)
To: abnegation
You stole my thunder.....why should someone get tax rebates when they didn't pay any taxes. The Dims continue to amaze me with their lies.
Reread the article. This is the whine of a RINO.
58
posted on
05/30/2003 10:39:47 AM PDT
by
AnnaZ
(unspunwithannaz.blogspot.com... "It is UNSPUN and it is Unspun, but it is not unspun." -- unspun)
To: fight_truth_decay
The result is that only families earning enough to pay taxes, or about $26,000, will benefit from the change. Higher-income families are expected to receive checks for $400 per child (maximum of two) in July and August. How terrible! Only those families who pay taxes will get a rebate. Unless you make too much money. My son and DIL will not get a rebate because they are the evil rich and make too much money. I think that any parent who pays income tax should get a rebate.
59
posted on
05/30/2003 10:57:28 AM PDT
by
Grampa Dave
(Can anyone ever remember the NY Slimes printing a truthful story? I can't!)
To: Grampa Dave
I know. I only wish this rebate WERE a "tax break for the very wealthy." My husband and I together (I work P/T) make just over the cutoff (I think the cutoff is $110,000?) and so even though we have three young children and pay a lot of taxes we will not get a nice $1,200 check this summer.
I think the "very wealthy" must be defined as those who make between $26,000 and $110,000 then?
So no tax break for us, as far as the children rebate thing. Bush's tax cut in general will save us $3,000/yr though. Thank you Dubya!
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