Increased Child Tax Credit Puts Money in Families` Pockets

Increased Child Tax Credit Puts Money in Families` Pockets

Republican tax policies, like the increased child tax credit, have allowed American families to keep more of their paychecks, rather than sending more of their money to Washington, D.C.

Republicans have increased the amount a family can claim for each child up to $1,000. But without future Congressional action, this number will be cut in half - increasing taxes on America's families. Recently, Democrats have refused to say what the fate might be of expiring tax relief - which includes the increased child tax credit.

"Republicans have led the effort to enact tax relief that is benefiting millions of Americans. It's expensive to raise a family and the child credit is one more way to ensure families keep more of their hard-earned resources for their daily needs," said Ways and Means Chairman Bill Thomas (R-CA). "Democrats won't commit to preserving these expiring tax provisions - which could mean big tax hikes for families down the road."

Some facts about the increased child tax credit:

* In 2005, 27 million tax returns claimed the child credit (Source: Dept. of Treasury)
* Allowing this credit to expire would mean a tax increase for those families
* An average-income family with two children could see its tax bill go up by $1000 if the increased credit value is allowed to expire

http://waysandmeans.house.gov/News.asp?FormMode=release&ID=448