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.

[Smogger]

I too am sick of this administration. Why doesn't Bush just contest the Democratic nomination so we can nominate a real conservative?

PLLLLEEAASSEE!!

Gimme a break! I get on my hands and knees everyday and thank God Bush is in the White House.

AND YOU SHOULD TOO!!

[Smogger]

The only thing that worries me is they didn't see it coming...

Nice recovery though. The whole sordid affair will be yesterday's news tomorrow.

[Myrddin]

I have now read all your posts. I stand by my comment. This is a rebate of INCOME TAX. There is no provision for ANYONE to get a rebate of sales tax, gas tax, phone tax, etc. We all get hit with those in an irrevocable fashion. Those taxes are assessed in an even handed fashion upon specifically consumed services. The INCOME TAX is not assessed in an even handed fashion. People whose gross incomes are under $26,000 do not pay any net income tax and often receive EITC welfare. They should not be getting any "refund" because they paid no income tax.

My income tax refund is going to help some American workers by purchasing the fruits of their productive labor. RCBS, CH Machine Tool and Smith & Wesson are my selected beneficiaries.

[Smogger]

The INCOME TAX is not assessed in an even handed fashion. People whose gross incomes are under $26,000 do not pay any net income tax and often receive EITC welfare. They should not be getting any "refund" because they paid no income tax.

Sorry to tell you but Medicare and SSI are taxes and they are not applied in an evernhanded manner as you assert.

[Smogger]

based on use of services that is..

[F16Fighter]

READ: Income Redistribution

But NOW the whoring GOP has joined the chorus.

Why must every @#&%!political "compromise" be a hard turn Left towards Socialism??

[F16Fighter]

"I am going to ask my senator to introduce a new bill, called The Definition of Act Act."

LOL

[Dave S]

so I would say the "rich" pay more in excise taxes than the poor will ever pay in their lifetimes.

If you had read my post you would have seen I said greater percentage of their income. That tariff on the BMW you quoted is not going take a very big chunk of a millionaires total income.

[Smogger]

Why must every @#&%!political "compromise" be a hard turn Left towards Socialism??

Cause that's the name of the game bro..

[Myrddin]

Sorry to tell you but Medicare and SSI are taxes and they are not applied in an evernhanded manner as you assert.

I know. I pay the max SSI by around September every year and Medicare all year. I'll never see a dime. There are huge number of social security beneficiaries who never paid a dime into SSI or Medicare. I'll be working until the day I die.

[Dave S]

earned income tax credits. I hear people brag about that all of time

The earned income tax credit or negative income tax began with Mr. Conservative Barry Goldwater.

[Smogger]

I know. I pay the max SSI by around September every year and Medicare all year. I'll never see a dime. There are huge number of social security beneficiaries who never paid a dime into SSI or Medicare. I'll be working until the day I die

That's right and many of them own their own home and have nice retirements too, but you can take comfort that many here on FR do not consider SSI to be a Federal Income Tax because they don't CALL it an Income tax.

[Dave S]

Quite frankly, giving a child tax credit to people who don't pay taxes makes as much sense as giving a child tax credit to people who don't have children.

Quite frankly giving a child tax credit or child deduction to anyone doesnt make sense. Anyone dumb enough to bring a kid into this world ought to be responsible enough to pay for it without eating up my tax money to do so.

[F16Fighter]

"Cause that's the name of the game bro.."

How is it the GOP can own Boardwalk and Park Place; Pacific, North Carolina and Pennsylvania Aves; and ALL FOUR Railroads, while the Dems own just Baltic, Mediterranean, and the Water Works -- YET the GOP still loses??

What a collective gutless wonder the Republicans are.

[Consort]

I have now read all your posts. I stand by my comment.

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I said you would.

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This is a rebate of INCOME TAX. There is no provision for ANYONE to get a rebate of sales tax, gas tax, phone tax, etc.

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I said that there should be.....for the same reason that is served by an income tax refund. It gives people some of their money back so that more people can buy guns.

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We all get hit with those in an irrevocable fashion. Those taxes are assessed in an even handed fashion upon specifically consumed services.

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Yes. Give some of that tax money back to the lower income types and then the Dems can't call it "tax breaks for the rich". The money can be used to buy guns.

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The INCOME TAX is not assessed in an even handed fashion. People whose gross incomes are under $26,000 do not pay any net income tax and often receive EITC welfare.

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Yes, welfare must continued to be reformed. Maybe EITC could be paid from those other (sales tax, gas tax, phone tax, etc.) taxes. Or at least part of it.

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They should not be getting any "refund" because they paid no income taxes.

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And I never said that they should.

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My income tax refund is going to help some American workers by purchasing the fruits of their productive labor.

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The same applies to the above. If it doesn't work, then that's the way it is.

[savedbygrace]

I should've been more clear. He'll sign whatever gets to his desk. The bill the Senate passed ain't gettin' there. The Hammer is locking it up tight.

[Smogger]

How is it the GOP can own Boardwalk and Park Place; Pacific, North Carolina and Pennsylvania Aves; and ALL FOUR Railroads, while the Dems own just Baltic, Mediterranean, and the Water Works -- YET the GOP still loses??

Alright. The Water Work's is this issue. The Dem's will sell it to you for $800 cause their broke and you have $5,000. Your going to win anyhow, but you buy it anyhow just to take it off the table and NOW YOU OWN IT. 'Cause you know, somtimes they get lucky, and keep rolling the dice, and landing on their same three properties (issues.) And why prolong this thing?

[BabsC]

That makes no sense at all and is pure socialism...

Remember they are "PROUD" to call themselves "Progressive Democrats" which is what the National Socialist (NAZI) party was called right before Hitler.

[BabsC]

They pay sales taxes and other non-income taxes and fees and payroll taxes if they work. So, the money they get back is from those taxes they payed. Everybody is getting back money that was payed in the form of one tax or another. I could be wrong.

You are wrong. We all pay sales taxes and other non-income taxes and fees. Payroll taxes are paid by purchasers, clients etc..This was supposed to be an "income" tax refund not a give away from producers to non-producers.

[SendShaqtoIraq]

"And what really pisses me off, the only "minimum wage" workers I know are waitresses, who usually only report 10% of their tips

At the watering holes I go to, they get around $150/night in tips"

Where are you please? I want to work at one of these watering holes. I worked as a waitress for many years and NEVER made money like that, and here in the midwest, waitresses don't get minimum wage either. The pay is $2.13/hr. Tip reporting works like this: it is calculated on how much you sell at a rate of 8%. Example: Sell $500, times 8%, you are required to report you made $40 in tips. Many people don't tip at all or only leave 10% so you're lucky if you get that $40. Then you are required to pay 2% of that $500 dollar sale to the bartender and the busboy, each, which comes to $20. So, lucky to go home with $20, but taxed on $40.
Thank God I don't do that for a living anymore.