DeLauro Introduces Legislation to Expand Child Tax Credit Refund to Working Families
DeLauro Introduces Legislation to Expand Child Tax Credit Refund to Working Families
WASHINGTON, D.C. - Congresswoman Rosa L. DeLauro (Conn.-3) today introduced legislation to expand the child tax credit refund to 600,000 working families in America. The bill is needed to correct existing federal law that increases the income requirements on the child tax credit refund, but fails to account for stagnant wages. The child tax credit provides working families earning up to $110,000 annually with a credit on their annual tax return, but families earning under $11,000 are not eligible for any refund from the credit.
"Our tax code must not penalize tax paying working men and women who are striving to provide for their families," said DeLauro. "The child tax credit provides an important refund to working families. We should not make it more difficult to apply for this credit."
The Working Families Tax Credit Act, enacted last year, provided an extension of the $1,000 refundable tax credit to working families through 2009. However, that law increased income requirements for the credit annually, meaning that this year, more than 600,000 families who work and pay taxes but earn less than $11,000 per year are ineligible for the child tax credit refund.
For example, a family with one full-time worker earning the minimum wage of $5.15 per hour and working a 40 hour week for all 52 weeks of the year gains no refund from the child tax credit because they earn only $10,700 annually before payroll taxes.
"At a time when wages are stagnant, we should not further punish working families who did not receive a raise last year," said DeLauro. "Under current law, it will become increasingly difficult to qualify for the child tax credit, because the income threshold will increase every year while minimum wage remains stagnant."
The legislation is The Working Family Child Assistance Act, the companion bill to Senate legislation introduced by Senators Snowe and Lincoln.
http://www.house.gov/delauro/press/2005/October/child_tax_credit_10_07_05.html