Cardin Says Republicans Deliberately Left Out Millions of Low-Income Families Out of Tax Cut

Rep. Benjamin L. Cardin

WASHINGTON – U.S. Rep. Benjamin L. Cardin has co-sponsored legislation that would provide low-income families with the same child tax credit that was extended to wealthier families in the recently enacted Republican tax bill. The Democratic-supported measure would extend the additional $400 child tax credit to 6.5 million families, affecting some 12 million children. The proposal is fully paid for by closing loopholes in corporate taxes.

In the recently enacted Republican tax cut, the current child tax credit of $600 was increased to $1,000. However, during last minute negotiations, Republican leaders purposely excluded families who earned between $10,500 and $26,625 a year from receiving the child tax credit.

The Democratic measure also would expand the refundable child care tax credit for families of military serving in Iraq and other combat zones. It also would accelerate marriage penalty relief for working couples who qualify for the Earned Income Tax Credit, affecting some four million families. This Democratic bill would broaden eligibility to 19 million children, including 323,000 in Maryland.

"In addition to being fiscally irresponsible, the recently enacted tax cut deliberately excluded millions of Americans who pay taxes. It provided the child tax credit to Americans earning up to $110,000 a year, yet singled out low-income Americans for second-class treatment. The irony of the situation is that we want low-income Americans to work, yet we don’t provide their children the same child tax credit that we’re willing to provide to wealthier Americans," said Rep. Cardin, the leading Democrat on the Human Resources Subcommittee.

The Congressman, who supported welfare reform, stressed that "lower-income Americans often need the most help for child care and other child-related expenses. To shortchange working lower-income Americans on child-related expenses makes no sense and undermines what we are trying to achieve in welfare reform."