As parents everywhere will gladly point out: Two wrongs don’t make a right. That’s why members of the U.S. House are misguided in their attempt to fix an oversight in last month’s tax cut package by now adding more tax breaks and gimmicks to an already unwieldy package.
Soon after President Bush signed the $350 billion tax cut and stimulus bill, it was revealed that an increase in the child tax credit would not apply to 6.5 million low-income families. According to a report requested by Rep. Mike Michaud and released Tuesday, more than 21,000 working families in Maine’s 2nd Congressional District will receive no benefits from the expansion of the child tax credit under current law.
The Senate wisely tried to fix this problem in a simple way. Under a proposal sponsored by Sens. Olympia Snowe and Blanche Lincoln, an Arkansas Democrat, the $400 per child increase in the credit would be extended to those who make between $10,500 and $26,625 a year. Raising customs fees would pay for the increase, from $600 to $1,000. This plan was endorsed by all but two senators. To capture enough Republican votes, the bill was amended to extend the child tax credit increase to couples to make up to $150,000 a year. The current cutoff is $110,000.
Even the White House, which had earlier insulted these low-income families by saying tax cuts were meant for those who pay taxes, not those who are too poor to pay, is now on board. “Pass it,” was the message from White House spokesman Ari Fleischer.
The Senate’s concessions and White House prodding haven’t convinced recalcitrant House Republicans, how-ever. They are championing their own child tax credit fix that will cost $100 billion in the first 10 years but has no offsetting revenue.
There is a saner alternative. Rep. Mike Michaud introduced a measure last week that mirrors the Senate bill. Even his bill, which also includes provisions to reduce the marriage penalty for low-income families and to change the family credit for military personnel who serve in combat zone, has too many extras. Keeping the legislation to fix this problem as simple as possible is imperative to its quick passage. Otherwise, the bill could get bogged down in the conference committee. This will harm those the measure is meant to help and could have political fallout as Democrats are sure to use this to paint Republicans as insensitive to the plight of the poor.
Helping 44,000 low-income families in Maine won’t just take a positive vote from House members, that vote must also come quickly. If the bill is not approved by late June, the low-income families will not get their refund checks in July and August when 25 million middle-class families get theirs.
Making sure these families also get a check – money they are supposed to spend to stimulate the economy – is important. So is doing it the right way.
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