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.

[Consort]

The point is, anything other than a flat tax is ridiculously unfair.

I'm all for scrapping the whole tax code.

[Myrddin]

What offends me even further is I have three kids, the youngest 17, the older two in college. What?! They're not costing me anything, you say?

Same situation here. A 23 year old and 20 year old in college. 15 year old in high school. The 20 year old will have military benefits when he returns from Kuwait in a few weeks. The 23 year old just lost medical coverage on my "family" coverage. No decrease in premiums though. He's had 4 open heart surgeries. He's on coumadin to keep his blood thin for the 2 artificial heart valves. Pricey stuff. The blood tests every 6 weeks are $40 a pop. The feds only confiscated $28,000 from me last year.

[SouthParkRepublican]

I’m still way back on this thread trying to catch up but does anyone really think we need to give low income individuals another reason to procreate?

[SouthParkRepublican]

"Eliminate free schooling and that will change"

Free schooling? That's a laugh... a scary one. What's terrible about it is that not only is it not free, it's not good.

[cherry]

"Everybody is getting back money that was payed in the form of one tax or another. I could be wrong."

we are wage earners with our youngest just turning 18....we have very little in dividend income....

I don't think we get anything from this bill, inspite of the fact that we support our HS child, and one older child with mild dissabilty...

as I see it, we are screwed, we have been screwed, and we will still be getting screwed down the line....

unless someone can tell my that being the nice MARRIED couple down the street means anything .......( ..or, when does that stinking marriage penalty get booted?)

[Sparta]

WTF is this guy talking about ... Democrats are getting almost EVERYTHING they want in this administration.

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

[AmusedBystander]

I’m still way back on this thread trying to catch up but does anyone really think we need to give low income individuals another reason to procreate?

As I am one of millions of middle class taxpayers who had the misfortunute to grow up with low income on an Illinois farm, I take offense to your crazy comment about poor people having the right to procreate.

As far as the increased tax credit goes, a tax cut is good no matter how you get it. These minimum wage payers pay just as high a tax burden as a percentage of their incomes as most folks. They pay social security on every dollar earned, it isn't phased out like higher incomes are. Any tax cut is a good government policy.

[Consort]

So someone that make $141,000 should not get anything back, whereas most of the "poor" that get a few thousand dollars back every April 15 due to earned income tax credit should get additional $400+.

In general, any money that people get back should come from taxes they pay. Earned Income Tax Credit....sounds like welfare to me and if it is, then maybe we need more welfare reform. If people don't pay taxes, then they will vote for the party that raises taxes.

[newgeezer]

does anyone really think we need to give low income individuals another reason to procreate?

Hmm. That's the sort of "interesting" comment I'd usually dismiss without a second thought. But, since it was to me, ...

Biblewonk, I think you're the right man, eminently qualified for this job. Care to weigh in?

[savedbygrace]

Cool. Da hamma strikes again.

[ACAC]

I agree that this helps Lincoln. On the other hand, the Republicans have to do this. They can't leave the perception out there that they gave a tax cut to everyone except the poorest people. I know people, who vote Republican, who fall into this category. They would be much less likely to vote GOP if they do not get this credit. These people do pay other taxes like payroll, property, sales, excise and all kinds of other taxes.

[cherry]

"The point is, anything other than a flat tax is ridiculously unfair. It's absurd to expect the rich to pay more than the poor. If Bill Gates is going to get taxed at 49% on his income then that single mother making $20,000 a year should get taxed at the exact same rate."

I wouldn't go that far.....

I think the rich thru their various devices really, really do get the best piece of the pie in this country....

tax investments for vacation homes, charitable contributions to their favorite leftist organizations, jetting everywhere for meetings....just read into the current fiasco at the Nature conservancy.....rich people getting special deals after donating to the charity....

the Middle income people...the working people...the people that neither get free health care or summer camps for their kids, who don't get college help, who can't deduct their "business expenses" because they never reach the threshold of the 2%....

the middle income folk are dying and no one gives a damn...

What I think our govt should do since they are in the social engineering business is to reward the average Joe/Jill who works, raises kids, pays taxes, maintains a marriage and a good family.....but that I guess is asking too much....

[cherry]

"Any tax cut is a good government policy."

but there is a horde of folks who DID NOT PAY ANY TAX....and I repeat...DID NOT PAY ANY INCOME TAX WHATSOEVER and who infact, got other people's money back already...this in direct constrast to me...who got a whopping $75 dollars back of MY money.....

If they never had to pay tax, they do not need a tax cut.....I do....I pay the tax...

[Pukin Dog]

That's right. The Senators know they can count on Delay. They took away the issue, so the Democrats cannot keep harping on it, at the same time, the only way that Delay brings this up, is when it is attached to a ton of new tax cuts. No more tax cuts means the thing passed today is a dead duck. Republicans under Bush are learning how to play the game. We canno juqpect to win on every issue, to the best thing we can do is just get rid of it before it can do any harm.

[SierraWasp]

Maybe you're right, but I don't care! A pox on both their irrational houses!!!

[CyberAnt]

Did you see the woman from MD on TV shaking her finger into the TV and saying, "shame, shame on you" to the repubs for leaving this out of the bill ...?? These people want it both ways - however, there are lots of voices out there saying it was in the original bill - but the dems said it was too expensive!!

[johnb838]

I have visions of Caesar mounting his chariot with bags of gold, riding among the poor to curry favor.

You SHOULD have such visions. Bread and circuses is what all of these class warfare issues are about at bottom.

[olivia3boys]

Well, this news today actually helped my family. My husband and I didn't qualify for the tax rebate yesterday because we make over $110,000 but under $150,000.

Now I guess we qualify and as we have 3 young children I suppose we get a check for $1200 this summer? Or was it capped at $800?

[Myrddin]

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. This is an INCOME TAX refund. Not sales tax. Not social security. Not Medicare. The people who are getting checks from this Democrat boondoggle did not pay income taxes. Most will get everything they paid in income tax PLUS earned income credits paid to them by the government. They actually get a handout all the time as it is. The RATS are trying to give them an even bigger one.

[RinaseaofDs]

Good to see the political system is evolving. Things haven't changed in 3000 years . . .