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Feature Story 
May 15, 2008
Who Is Helped by the Child Tax Credit Provision in the House Tax "Extenders" Bill?

From Center on Budget and Policy Priorities:

The tax "extenders" bill scheduled for mark-up today in the House Ways and Means Committee (H.R. 6049) would temporarily expand the Child Tax Credit by lowering the earnings threshold that families must meet to qualify for the refundable portion of the credit.

According to the Tax Policy Center, this provision would benefit 13 million children --- including 2.9 million children who would become newly eligible for the benefit and 10.1 million children who would see their CTC increased due to this provision.

An expanded CTC would provide assistance to these families in which parents struggle to maintain jobs and meet the health and other expenses they incur due to the disability.

The parents who would be assisted work in a broad range of low paying jobs; many perform difficult jobs that provide critical services, such as caring for the elderly or teaching young children.

480,000 parents provide health care services to the elderly or the ill as nursing home workers, home health aides, personal care assistants, medical assistants, and other low-paid health care professionals.

Estimates of the number of children who would benefit from the CTC provisions that are based on the March 2006 Current Population Survey are somewhat lower than those computed by the Tax Policy Center.

Because TPC has more complete data on tax filing units and tax filers' taxable income than are available from the Census Bureau, the TPC figures on the total number of children who would benefit are generally considered more accurate than the estimates using the March CPS data.

Read more from this post.

Posted on May 15, 2008 10:06 PM


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