August 2, 2012
(202) 999-4853 (office)
For Immediate Release: August 2, 2012
Washington – A tax bill passed yesterday by the U.S. House of Representations would raise taxes on millions of children and families, according to an analysis by First Focus. The Job Protection and Recession Prevention Act (H.R. 8) passed 256-171 along a mostly party-line vote.
“There is never a good time to raise taxes on children and their families, especially today when more than one in five U.S. kids live in poverty,” said First Focus President Bruce Lesley. “Our children are hurting from the recession, and a bill that makes steep cuts to tax credits for kids would only make matters worse.”
The legislation extends for one year the 2001 and 2003 tax packages without recent improvements to the Child Tax Credit (CTC), Earned Income Tax Credit (EITC), and American Opportunity Tax Credit (AOTC). A separate U.S. Senate tax bill passed in July extends the improved version of all family tax credits.
About 29 million children and 25 million working families would experience tax increases in 2013 as a result of H.R. 8, according to the First Focus analysis. H.R. 8 tax increases to kids and families in 2013 would include:
While raising taxes on children and low and middle-income families, H.R. 8 would extend tax cuts to families earning more than $250,000 per year. The Senate bill would also extend the same cuts to all families, but only up to the first $250,000 in income. The CTC and EITC apply only to low and middle-income working families.
It is unlikely that House and Senate tax bills will be reconciled before the November election.
“Raising taxes on our children means less money over the year to cover what really matters to families– a rent payment, a few months of groceries, and school supplies for the fall,” said Lesley. “U.S. families should expect better from lawmakers and demand that Congress doesn’t raise taxes on our kids.”
Download the First Focus analysis here.
First Focus is a bipartisan advocacy organization dedicated to making children and families a priority in federal policy and budget decisions. For more information, visit www.firstfocus.net.