ALEXANDRIA, VA – Today, the U.S. House of Representatives approved legislation to change the alternative minimum tax (AMT), dropping provisions that would make critical improvements to the Child Tax Credit originally included in the bill. First Focus, a bipartisan children’s advocacy organization, expressed its disappointment and urged Congress to ensure low-income families are not ignored by reforming the Child Tax Credit as soon as possible.
“A reformed Child Tax Credit is an important first step on the path towards a tax code that makes the needs of America’s children a top priority,” said Bruce Lesley, President of First Focus. “The removal of the Child Credit from the AMT reform bill will affect nearly 13 million low-income children, keeping the families of nearly 3 million children from taking advantage of this important benefit.
“Working families with children need all the help they can get. The federal tax system should be designed to help these families provide for their children, work hard, and stay out of poverty. Congress’ inability to remember these families during consideration of this tax package is disheartening.
“First Focus is committed to a fairer, more equitable tax system, and to ensuring a bright future for our children. We are hopeful that when the congress reconvenes in January, they will move to consider improvements to the child tax credit as soon as possible.”
Currently, the child tax credit is a refundable tax credit that allows families to receive a refund of 15 percent of their 2008 income that exceeds $12,050. The proposed legislation would lower the minimum floor to $8,500 for 2008. Lowering this floor would extend eligibility for the credit to 2.9 million additional children, while increasing refunds for approximately 10 million additional children.