Baldwin Testifies on Need for Expanded Child Tax Credit

Baldwin Testifies on Need for Expanded Child Tax Credit
November 17, 2005

Stands Firm for Middle Class Families

Congresswoman Tammy Baldwin testified today before the House Ways and Means Subcommittee on Select Revenue Measures urging passage of her bill that would extend eligibility of the existing child tax credit to families with 17 and 18 year old children.

Baldwin introduced the Child Tax Credit for American Families Act (H.R. 1597) in April of this year. In her testimony today, Baldwin described the plight of Dennis and Carol McQuade of Madison whose two sons, Miguel and Beto, though still in school and dependents of their parents, no longer qualify for the child tax credit.

"Imagine being a parent who has benefited from the child tax credit throughout your child's school years only to learn that as you face the added expense of college, that the $1,000 credit disappears," said Baldwin.

The Tax Credit for American Families Act would help an additional 8 million families nationwide, and approximately 162,000 families in Wisconsin. "As families struggle with ever higher heating and gas bills and additional family expenses, it's time we start helping the people who need it most - middle and lower income families whose children are still dependent on them. My bill stands by middle class families," she said.

A transcript of Baldwin's testimony follows:

Congresswoman Tammy Baldwin
Testimony before the House Ways and Means Subcommittee on Select Revenue Measures
Hearing on Individual Tax Proposals by Members of the U.S. House of Representatives
November 16, 2005

Thank you, Mr. Chairman, for giving me the opportunity to testify before your subcommittee today on a bill I reintroduced this past April, H.R. 1597, the Child Tax Credit for American Families Act.

I would like to talk about a family in my congressional district with whom families in every state - and every congressional district - can identify. Dennis and Carol McQuade live in Madison, WI and have two sons, Miguel and Beto. Dennis is a veteran of the Vietnam War who works as a dedicated social worker, while Carol has worked as a school nurse for the past 25 years.

Beto is a typical, studious freshman at the University of Wisconsin-Madison and is currently trying to figure out what major he wants to pursue. His younger brother, Miguel, is a senior at East High School and is busy sending out college applications, making college visits, and trying to save enough money from his part-time job working at UW football games to help his parents with college costs next year.

Like most Americans, Dennis sits down every spring and compiles his family's tax returns. When Miguel and Beto were younger, Dennis and Carol always took solace in the fact that they could claim the Child Tax Credit to help afford the things that their kids needed - perhaps a new pair of sneakers or bigger clothes for their growing boys. But when Beto turned 17 a few years ago, Dennis got the surprise most parents before him have received: Once a child turns 17, parents are no longer able to claim the Child Tax Credit.

Congress limited the tax credit to parents with children under 17 in part because they felt that 17 and 18 year-olds are essentially not children anymore. Some 17 and 18 year-olds are less reliant on their parents for their basic, everyday needs, but being a parent to older teens is certainly not easy financially. In fact, finding the funds to send your child off to the next stage of his or her life is typically the most expensive time to be a parent - let alone the most stressful and heart-wrenching.

My bill would amend the tax code and expand the Child Tax Credit to parents of 17 and 18 year-olds. Congress was wise to raise the credit to $1,000 four years ago and would be wise again to expand this invaluable tax credit. Without a doubt, H.R. 1597 would greatly assist most parents - especially single parents - cope with the rising cost of having older teens, and preparing them for the next stage of their life. I urge the subcommittee to take action on this needed legislation.

Thank you again for giving me the opportunity to testify today, Mr. Chairman.

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