Senate Passes Lincoln Child Tax Credit Provision
Press Release
Senate Passes Lincoln Child Tax Credit Provision
U.S. Senator Blanche Lincoln's (D-Ark.) effort to ensure that more of America's low-income, hardworking families receive the benefit of the child tax credit has been approved by the Senate. Lincoln's measure was part of the final fiscal year 2009 budget resolution, which the Senate passed today.
"Congress must ensure that low-income, hardworking families are eligible to receive the child tax credit, particularly at a time when families are battling rising food and energy prices," Lincoln said. "The budget resolution is the first hurdle in providing this critical relief. As Congress considers a tax policy package in the coming months, I urge my colleagues to follow through on their promise 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.
During her tenure in the United States Senate, Lincoln has made fighting for working families one of her top priorities. From her seat on the Senate Finance Committee, Lincoln has played a key role in our nation's tax policy, specifically working to ensure the child tax credit is refundable and is available for low- and moderate-income working families.
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