WASHINGTON – U.S. Sens. Olympia Snowe, R-Maine, and Christopher Dodd, D-Conn., introduced legislation last Thursday to double the child tax credit to $1,000, making the first $500 per child of the credit refundable.

“Our legislation will bolster the president’s proposal to double the child tax credit, squarely targeting the millions of American families whose taxes are paid through payroll tax, gasoline tax, phone taxes, and other taxes – yet bear a limited federal income tax liability,” said Snowe, a member of the Senate Finance Committee. “By making the child tax credit partially refundable, we ensure that working families share in the benefit of this package – and help the children most in need with significant, deserved tax relief.”

The Child Tax Credit Expansion and Equity Act of 2001 also proposes making the first $500 of the credit refundable to low- and middle-income families, a measure the senators called an “important first step” that will lift more than one million children out of poverty.

Snowe and Dodd noted that the costs associated with raising a child are borne by families at all income levels, so their proposal more fairly distributes tax relief to all working families. Making the credit refundable would permit families with incomes from $10,000 to $20,000 to share in tax relief as well, they said. The senators said they will work to incorporate their measure into the tax package that will soon be considered by the Senate Finance Committee.