DeLauro Applauds Inclusion of Child Tax Credit Provision in Recovery Package

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DeLauro Applauds Inclusion of Child Tax Credit Provision in Recovery Package

Credit considered one of the most stimulative of tax proposals

Congresswoman Rosa L. DeLauro (Conn. -3) praised the Child Tax Credit provision in the American Recovery and Reinvestment Act (H.R. 1). Economists have called the refundable tax credit, one of the most stimulative, as well as among the most targeted and most efficient in getting the economy moving. The legislation lowers the eligibility threshold for the Child Tax Credit from $12,550 to $3,000, so that families who work full time, full year at the minimum wage would get nearly a full child tax credit for up to two children; families who work part time would get a partial credit; and families who don't work still would not get a credit.

"I am extremely pleased that we lowered the eligibility threshold for the Child Tax Credit in the recovery package. By putting these resources in the hands of the people most likely to quickly turn around and spend it, we both boost the economy and lessen the hardships of low income Americans," said DeLauro.

"Lowering the Child Tax Credit eligibility threshold to $3,000, provides an increased Child Tax Credit of up to $1432.50 to the families of 15.9 million children, including 5.5 million newly eligible children. For a single-earner working full time, full year at the minimum wage with one child, for the first time, you will be eligible for the full $1,000 Child Tax Credit.

As a result of the threshold lowered to $3,000, a single-earner working full time full year at the minimum wage with two or more children will get a Child Tax Credit of $1,515.00. Previously under the law, that single earner will have received a Child Tax Credit of $82.50. And when the minimum wage increases on July 24, 2009, the Child Tax Credit for that same earner will go up to $1,725.00.

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