House Reluctantly Passes 'Welfare' Legislation
Talon News
By Jimmy Moore
June 16, 2003
WASHINGTON (Talon News) -- The controversial $1000 child tax credit extension bill that would give low-income families who do not pay income taxes an annual tax deduction until 2010 passed the House on Thursday.
The 224-201 vote on the $82 billion in new tax cuts provides a government subsidy for low-income families who do not pay income taxes and offers some tax relief for additional married couples not covered by the $350 billion tax cuts recently signed into law by President Bush.
However, the House version of this bill is radically different from the one passed by the Senate, which would provide a $400 rebate check to 6.5 million families who do not currently pay enough income taxes to qualify for the child tax credit. The cost of this would be paid for by increasing customs fees and duties. The Senate version of the bill passed 94-2.
Moreover, Democrats are blaming House Republicans for failing to instruct the Treasury Department to send rebate checks to low-income families this year. Republicans say that the families will be able to deduct the child tax credit from their taxes next year. But, some Democrats are angry about this.
"This is one of the most cynical and hypocritical moves I have ever seen," said Rep. Charles Rangel (D-NY).
Republicans argue that the bill that passed the House does not prevent the Treasury Department from printing checks for the low-income families this year.
"We intend to get these checks out as quickly as possible," said John Feehery, a spokesman for House Speaker Dennis Hastert (R-IL).
Rep. Bill Thomas (R-CA) reassured Democrats that the rebate checks going out to these families would "obviously ... be one of the issues." At the same time, Thomas expressed disappointment in the Democrats for failing to see what the House version of the bill does for many taxpaying families.
"Sadly, rather than focusing on the merits of this legislation, some [Democrats] have used this as a political opportunity," he remarked.
Still, some conservative Republicans are upset by the compromise child tax credit bill because they say it should only be given to people who pay taxes.
"We're turning our tax code into a welfare system," said Rep. Spencer Bachus (R-AL). "It's not a tax refund. Let's call it what it is -- it's welfare. If we want to turn our income tax code into a welfare system, let's be honest with the American people."
The Bush administration urged the House and Senate to "quickly resolve their differences." But both chambers are adamant about what is contained in their respective bills.
Democrats fear the House version of the bill will prevent the low-income families from receiving the rebate checks this summer because of constant negotiations.
"I don't think it's ever going to happen," bemoaned House Minority Leader Nancy Pelosi (D-CA).
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