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Posted: 5/29/2003 8:51:06 AM EDT
[url]http://www.nytimes.com/2003/05/29/politics/29CHIL.html?th[/url] Tax Law Omits Child Credit in Low-Income Brackets By DAVID FIRESTONE ASHINGTON, May 28 — A last-minute revision by House and Senate leaders in the tax bill that President Bush signed today will prevent millions of minimum-wage families from receiving the increased child credit that is in the measure, say Congressional officials and outside groups. Most taxpayers will receive a $400-a-child check in the mail this summer as a result of the law, which raises the child tax credit, to $1,000 from $600. It had been clear from the beginning that the wealthiest families would not receive the credit, which is intended to phase out at high incomes. But after studying the bill approved on Friday, liberal and child advocacy groups discovered that a different group of families would also not benefit from the $400 increase — families who make just above the minimum wage. Because of the formula for calculating the credit, most families with incomes from $10,500 to $26,625 will not benefit. The Center on Budget and Policy Priorities, a liberal group, says those families include 11.9 million children, or one of every six children under 17. "I don't know why they would cut that out of the bill," said Senator Blanche Lincoln, the Arkansas Democrat who persuaded the full Senate to send the credit to many more low income families before the provision was dropped in conference. "These are the people who need it the most and who will spend it the most. These are the people who buy the blue jeans and the detergent and who will stimulate the economy with their spending." Ms. Lincoln noted that nearly half of all taxpayers in her state had adjusted gross incomes that were less than $20,000.
Link Posted: 5/29/2003 8:59:40 AM EDT
I thought this would make all those complaining about this rebate a little happier.
Link Posted: 5/29/2003 8:59:52 AM EDT
"I don't know why they would cut that out of the bill," said Senator Blanche Lincoln, the Arkansas Democrat " Maybe because the never paid it to begin with & therefore never earned it.
Link Posted: 5/29/2003 9:03:35 AM EDT
[b]Cuz they DON'T PAY TAXES in the first place!![/b]
Link Posted: 5/29/2003 9:26:51 AM EDT
Thank you for that statement fight4yourrights.
Link Posted: 5/29/2003 10:46:07 AM EDT
BTT
Link Posted: 5/29/2003 10:49:22 AM EDT
My thoughts exactly, you gotta actually pay taxes to get some back.
Link Posted: 5/29/2003 10:51:37 AM EDT
Originally Posted By Hellraiser: My thoughts exactly, you gotta actually pay taxes to get some back.
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Democrat heresy!
Link Posted: 5/29/2003 11:03:49 AM EDT
[Last Edit: 5/29/2003 11:05:17 AM EDT by Offspring]
I saw a piece on CNN stating that under the tax cuts a family with 2 children making $100,000 a year would get back around $2,000. A single person making over $50,000 would get back around $300. My parents are both hard working taxpayers with 3 kids, but don't fall into the income bracket. Did I hear this right on CNN?
Link Posted: 5/29/2003 3:04:43 PM EDT
Wow , congress finally got some common sense !
Link Posted: 5/29/2003 3:10:44 PM EDT
Originally Posted By fight4yourrights: [b]Cuz they DON'T PAY TAXES in the first place!![/b]
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I believe someone in the media asked Ari about this and that's exactly what he told them. You can't get something back when you didn't pay it out in the first place. Woooo Hoooo!
Link Posted: 5/29/2003 3:28:58 PM EDT
Originally Posted By Offspring: I saw a piece on CNN stating that under the tax cuts a family with 2 children making $100,000 a year would get back around $2,000. A single person making over $50,000 would get back around $300. My parents are both hard working taxpayers with 3 kids, but don't fall into the income bracket. Did I hear this right on CNN?
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That combines the child credit with marginal rate reduction. Fight4your rights has it rignt with why low income folks don't get the credit. The way I read it - if you pay only $200 in taxes and you have a kid, you will get that money back, but you can't get back more than you pay with this plan. The Earned Income Tax Credit that passed during the Clinton administration allows folks who don't pay any income taxes to get a "refund" meaning that they don't pay and they get a payout from those who do pay. Social security taxes are also unaffected by this bill. You will still pay 15% on your first $88K dollars. Look for the dems to move to raise the amount of income that is taxable there as opposed to income taxes.
Link Posted: 5/29/2003 4:04:03 PM EDT
This should put a stop to the unbelievable amount of complaining about this tax bill. Not much was mentioned about the increase in the amount of money the Govt. can and will have to borrow to pay for this wonderful tax cut.
Link Posted: 5/31/2003 4:27:04 PM EDT
Originally Posted By D348: This should put a stop to the unbelievable amount of complaining about this tax bill. Not much was mentioned about the increase in the amount of money the Govt. can and will have to borrow to pay for this wonderful tax cut.
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I cant believe no one has jumped you yet for bad-talking the republican tax cut that you only get if you have kids. Why would they leave out the lower class and those without kids? Maybe its because middle class families are the largest voting block. This was used to buy votes you know.
Link Posted: 5/31/2003 4:47:35 PM EDT
Originally Posted By union2k2:
Originally Posted By D348: This should put a stop to the unbelievable amount of complaining about this tax bill. Not much was mentioned about the increase in the amount of money the Govt. can and will have to borrow to pay for this wonderful tax cut.
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Why would they leave out the lower class and those without kids? Maybe its because middle class families are the largest voting block. This was used to buy votes you know.
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I would agree, the the folks who statistically don't vote got dinged the hardest. Who says that it is too much trouble to vote, or I don't have time. This is the result.
Link Posted: 5/31/2003 8:21:57 PM EDT
I would agree, the the folks who statistically don't vote got dinged the hardest. Who says that it is too much trouble to vote, or I don't have time. This is the result.
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That is pretty silly. First nobody got dinged… How is letting people keep more of their own money dinging anybody? Politics of envy. Second was it not the “moderates” that wanted to limit this tax cut to 350 million. Well they succeeded. Third for everybody who has a kid and pays taxes the deduction for that child went up to $1000. If you do not pay taxes you should not get a tax cut. It is a tax cut not free money.
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