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
(2004) Free MaineCare for children, 19 and 20-year olds, parents and pregnant women..Eligiblity guidelines
Maine has agreed to cover very low-income adult Free health care - immigrants without children.
"Good Wheels" program also provides help with car repairs.
Student Aid. The Parents as Scholars (PaS) program is a student aid program that helps low-income parents in two or four-year college programs. It was created by the Maine Legislature in 1997 as part our state's welfare reform plan.
More Families will be Eligible For Food Stamps!EBT card "So if you are having trouble making ends meet and need food stamps, don't let that $5,000 car or other needed asset worry you - apply!"
Housing Costs assistance, property poverty tax abatement
By definition, a taxpayer is someone who "pays taxes". If you dont pay taxes, you dont get tax relief. A tax credit for those that dont pay (income) taxes is welfare, not "tax relief". Capiche?
I never understood the idea of a refundable tax credit allowing someone to effectively pay negative taxes. Under the Federal income tax system in place now they are paying $0 in Federal income taxes. They should be overjoyed, instead of whining.
IF YOU DON'T PAY ANY TAXES, YOU CAN'T GET A CREDIT FOR TAXES PAID. YOU WON'T RECEIVE A REBATE CHECK BECAUSE YOU DIDN'T PAY ANY TAX.
Did I lose you again?
It would be nice it that were true. Actually, with the earned income tax credit, many people pay negative taxes. They want their negative taxes (refund)to be increased by $400 per child.
My point, however, is that if she'd supported the tax cut she might have had some input in the final package.
Weren't taxpayers penalized on the front for taking up the "tax paying slack" for the the low income families who already got a break for NOT paying their fair share in the first place?
Maybe THAT statement will knock some sense into Olympia!
Mmm, I doubt it.
To be fair, I suppose she wants to also give food stamps and welfare payments to those currently paying taxes, because they are not benefitting from these programs.
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