Help for Working Families Left Out By New Tax Law

Summary of “Working Families Tax Credit Act of 2003” (H.R. 2286)

For Immediate Release:

June 3, 2003

Contact:House Democratic Caucus

 Republicans have left moderate-income families behind in their zeal to cut taxes on millionaires, contrary to their “leave no child behind” rhetoric.  H.R. 2286 helps moderate-income working families and is revenue neutral. 
 

PROVISIONS

Provides Child Credit to More Working Families

 Lowers to $7,500 (from $10,500) the amount of the wages a family must have before refundability of the child credit begins.  This is identical to a provision that was included in the house Democratic alternative on the economic stimulus legislation.  The credit would be allowed for approximately 19 million additional children by reason of this change.

Increases Benefit for Working Families

 Increases partial refundability from 10% of wages to 15% of wages.  Again, this is identical to a provision that was included in the Democratic alternative.  This would result in an average credit increase of over $300 per child. 

Helps Families of Soldiers in Combat

 Allows refundability for families of soldiers in combat zones even though combat wages are not taxed.

Speeds up Marriage Penalty Relief for Lower Income Working Couples

 Makes effective immediately the marriage penalty relief in the Earned Income Tax Credit that was provided in the 2001 tax cut.  This is the only marriage penalty relief not accelerated in the recently enacted tax bill.

Does Not Increase the Deficit

 The estimated $30 billion over ten year cost is fully off-set by closing corporate loopholes: prohibiting tax shelters, and taxing corporations that move headquarters offshore (expatriates).