June 12, 2003
HOUSE CHILD CREDIT BILL GIVES BIGGER TAX
BREAK TO MEMBERS OF CONGRESS
THAN TO LOW-INCOME WORKING FAMILIES
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The child tax credit bill on which the House of
Representatives will vote today gives a much larger new tax break to Members
of Congress who already receive hefty tax cuts under the tax-cut bill signed
two weeks ago than to the low-income working families left out of the
recently signed bill.
- With a salary of $154,700 in 2003, Members of
Congress with one or two children are ineligible for the child tax credit
under the current law.
- Under the House bill, married filers that have two
children and incomes of $154,700 will receive a child tax credit of $1,750
or $875 per child. For such a family, this is a $1,750 tax cut in tax year
2003. This tax cut will be on top of the generous tax cuts that people at
this income level including Members of Congress receive under the
tax-cut bill signed two weeks ago. (Members of Congress with outside income
that raises their total income somewhat above $154,700 will receive a
smaller tax cut under the House child credit bill.)
- Similarly, a House member with three children
already is receiving a $750 tax cut as a result of the child tax credit
provisions in the newly enacted tax-cut law. Such a Member will receive a
further $2,000 tax cut from the child tax credit provisions of the House
- By contrast, low-income working families with
children left out of the recently enacted tax cut law will receive much
smaller tax benefits. A married family with two children who earns $15,000
will receive a tax benefit of $225 in 2003 or $112.50 per child from the
House bill. This is about one-eighth of the new tax break that a Member of
Congress with two children and an income of $154,700 will get.
A married family with two children and income of
$20,000 will receive a tax benefit of $475, or $237.50 per child. This is a
little over one-quarter what the Member of Congress with two children and an
income of $154,700 will receive under this legislation.