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.