Lincoln Child Tax Credit Provision Included in Senate Budget

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Lincoln Child Tax Credit Provision Included in Senate Budget

Lincoln provision would cover at least one million additional children in 2009, an additional two million children in 2010

U.S. Senator Blanche Lincoln (D-Ark.) today announced that her provision, which would ensure that more of America's low-income, hardworking families receive the benefit of the child tax credit, has been approved by the Senate. The Fiscal Year 2009 budget resolution, which included Lincoln's measure, passed the Senate early Friday morning.

"I am pleased that the Senate approved my amendment to ensure that thousands of America's hardworking families are not left behind," Lincoln said. "This is a good first step, but Congress must follow through to expand tax relief to full-time working parents who have been unfairly disqualified for the credit simply because their wages haven't kept up with inflation."

When the child tax credit refundability law was written in 2003, it was indexed for inflation and as such has increased each year. Because the income threshold is tied to inflation, many low-income working parents no longer qualify for the refundable credit because their wages have fallen below the minimum income requirement. Families must currently meet an income threshold of $11,750 in order to be eligible for the refundable child tax credit.

Lincoln's measure would correct inequities in the current law which have prevented thousands of working families from receiving the credit due to inflation. The amendment sets the income requirement at $10,000 for 2009 and 2010. In addition, the amendment removes the indexation of the income threshold so that it stays at $10,000 rather than increasing with inflation. Lincoln said her provision would allow the refundable child tax credit to cover at least one million additional children in 2009 and an additional two million children in 2010.

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