Senators Strike Child Tax Benefits Deal

AP | 6/05/03 | MARY DALRYMPLE

[kattracks]

WASHINGTON (AP) — Unable to shake Democratic demands that minimum wage workers get the same benefit from a $1,000 child tax credit as other families, Republicans in the Senate struck an agreement to expand the benefit for low-income families and extend the benefit to more high-income couples.

"There is a deal," said a spokesman for Sen. Blanche Lincoln, D-Ark., who has been advocating the change since President Bush signed a $350 billion tax cut last month.

The strategy, designed to diffuse a growing storm over a bigger child tax credit for middle-income but not low-income families, gives both Republicans and Democrats a reason to back the bill.

Minimum wage workers would get the same rebate check, worth $400 per child, going to other families later this summer — giving Democrats a rare victory in a Republican-ruled government.

Married couples making up to $140,000 could claim the full credit for two years at the end of the bill's 10-year horizon. That change would limit the so-called "marriage penalty" in the credit and give Republicans a win.

Republicans resisted changing the law, which currently offers the credit to families who pay income tax and gives minimum wage workers — those who get enough tax benefits to see their income taxes eliminated — a partial refund.

Some Republicans have historically supported refundable tax credits, such as the much larger earned income tax credit, as a way to encourage low-wage workers to stay in the labor force and avoid welfare.

Backed by a strong push from community activists, Democrats pointed to the tax cut enacted last month as concrete proof that Republicans favor the wealthy over the poor.

"This administration is waging war on poor children," said Sen. Hillary Rodham Clinton, D-N.Y. "The reality is that they are steadily and surely trying to turn the clock back on all of the programs and supports that working families and their children need and deserve."

The legislation also reduces the five definitions of a "child" used for different tax deductions and credits to a single definition. The bill's $10 billion cost will be offset by an extension of customs fees.

[smlrgvtpls]

I am so tired of watching my tax dollars being spent by those who were to irresponsible to consider the impact children would have on their budget. Oh, I'm sorry, theres a "progressive" party pulling all the strings in government. Hello, when are we finally going to nail these idiots to the wall? Next elections maybe? How much more control do we need before we stop passing almost everything the left wants? I guess I'll be purchasing big screens for "the working poor" for quite some time. A right wing majority implamenting the lefts agenda.

ENOUGH!!!

[Consort]

You didn't read my posts.

[Myrddin]

Single people pay the highest tax rates in the nation.

I'm married with 3 kids. I have to have my taxes assessed at the Single/zero exemption rates to ensure enough is confiscated so that the marriage penalty can be covered for my wife's income. My FIT was over $28000, SIT over $12000, property tax over $3000. In 2000, my FIT was over $70000. For all the money confiscated, I haven't seen any better services than the slobs in the trailer park 3 blocks away. At least they get to visit with the police officers on a nightly basis.

[smlrgvtpls]

Sorry, just a rant.

[battousai]

"The GOP got a BUNCH of help in bolstering the economy because those lower income workers SPENDDDDDD that $400 per child immediately goosing the ecomomy RIGHT NOW. "

Guess Nike must be happy, thats two pairs of running shoes isn't it? (Thats what these so called poor deprived starving people all seem to wear $200 shoes)

[clintonh8r]

Did you see the woman from MD on TV shaking her finger...

That was no woman....that was Senator Mikulski....

[Arpege92]

There are alot of welfare families in the next town from me and some of them have HUGE families. They are going to clean house with this tax break!

Not to worry though, once another demorat gains control of the White House, taxes will go up and so will the benefits for welfare families!

I'm deeply saddened

[hunter112]

They weren't going to vote anything but Rat, anyway. Everybody I know who makes low enough wages to get the EIC thinks Republicans are only in it for the "rich folks". Even my new wife's family thinks this, boy, do I have my work cut out for me!

While they're giving stuff away, how about extending that child credit to 17 and 18 year olds? My wife has a daughter that just turned 17, and in addition to losing the EIC, we have the insult that there is no more child credit for the daughter. Ridiculous, now that she is old enough to drive, and the expenses have REALLY started!

Just kidding, I'll just be thankful that the interest rates are low enough for us to buy a house when I finish school in a couple of weeks.

[Those_Crazy_Liberals]

"Yep. They folded again. The Republicans couldn't fight their way out of a paper bag."

Now that they have the libs by the gonads, they needs to keep squeezing. I would use this legislation to remove all the sunsets on the Bush tax proposal just passed.

[Those_Crazy_Liberals]

"The GOP got a BUNCH of help in bolstering the economy because those lower income workers SPENDDDDDD that $400 per child immediately goosing the ecomomy RIGHT NOW."

It would be most efficiently spent if left in the hands of the person that earned it.

[Jim Noble]

The GOP got a BUNCH of help in bolstering the economy because those lower income workers SPENDDDDDD that $400 per child immediately goosing the ecomomy RIGHT NOW

How does taking $400 from you (so that you don't spend it, obviously) and giving it to somebody else (after deducting Federal carrying charges) result in a net economic gain?

[pgkdan]

The b*stards just turned our tax cut victory into a new entitlement defeat! Spineless, unprincipled opportunistic b*stards!

[A. Pole]

They didn't pay any taxes! Am I missing something?

Yes, they paid sales taxes, property taxes (if renting included in their rent), Social Security tax, taxes paid by the employers etc, etc ... Federal tax is only one of many taxes.

[Lancey Howard]

"This administration is waging war on poor children," said Sen. Hillary Rodham Clinton, D-N.Y.

Hillary Clinton is a scumbag.

[maxter]

Regarding those families with all the kids who will "clean up on the tax breaks." I look at it like this. Better them than me. That money won't last long and although I dearly love my grown children, I'll still be enjoying that empty nest syndrome.

[Myrddin]

My comment was directed only to your post #41. I did in fact read that post.

[Consort]

You should have read all my posts (there aren't that many) before you jumped to a conclusion. But now you'll have to stick to your statement.

[Let's Roll]

Saw the dims demagoguing on FOX. One particularly vicious and ugly woman from New Jersey was crying "shame on" the Republicans etc. Not familiar with NJ congress critters so can't remember her name.

Blanch Lincoln, D. Ark, who voted to remove the "poor" from the handout the first time is now breaking her arm patting herself on the back getting credit for helping the "poor". What a setup. Tails they win, heads they win.

[Smogger]

He'll sign it

HELL YEAH HE'LL SIGN IT!!

They need to rush and put this thing on his desk tomorrow!

Some of you are so ideological. I'm trying win an election. This is a no-brainer for the politically astute Bush.

Things are looking up. The economy. The war. Tax Cut passed. Ratings are still high. No time for complicated easily spinnable tax discussions like this.