DeLauro, Neal Propose To Make Tax Credit for Working Families Permanent

Expanded Child Tax Credit Lifted Nearly Two MillionChildren Out Of Poverty

WASHINGTON, DC—Representatives Rosa DeLauro (D-CT) andRichard Neal (D-MA) introduced legislation today to make the expanded Child TaxCredit (CTC) permanent, putting money back in the pockets of working families.The expanded CTC has been in place since 2009, but is scheduled to expire in2017.

"Since Congress expanded the Child Tax Credit in 2009,nearly two million children have been lifted out of poverty," DeLauro said."Millions of other working parents have used the additional money in theirpocket to improve their children's lives. We are not just talkingabstract numbers; we are talking about money that makes a real difference inthe lives of families across America and in the strength of our economy.

"There is no reason we can make permanent an estate tax cutthat benefits a miniscule amount of wealthy Americans and not do the same forworking families," she continued. "I urge my colleagues to support thislegislation so we can bring some certainty and benefits to the people who needit most."

"Since 1997, the Child Tax Credit (CTC) has helpedimprove the quality of life for millions of Americans. This popular andsuccessful program eases the financial burden that many middle class parentsface when raising their children. For more than a decade, the CTC has kept manyworking families in Massachusetts out of poverty. After expanding andstrengthening the tax credit on two separate occasions, I believe Congressshould work in a bipartisan manner to make the CTC permanent," said Neal.

The Child Tax Credit Permanency Act would make theCTC expansion that began in the Recovery Act, and was recently extended in theAmerican Taxpayer Relief Act, permanent. It would also index the value of theCTC to inflation to stem the erosion of the credit. In addition to Neal andDeLauro, the legislation is supported by 70 members of the Democratic caucus.

Since 2009, nearly nine million families--includingapproximately 18 million children--have benefitted from an expanded CTC,including two million children who have been lifted out of poverty.

The CTC was originally created in 1997 to help workingfamilies defray some of the costs of raising a family. According to the U.S.Census Bureau, the Child Tax Credit, together with the Earned Income Tax Credit(EITC), has lifted more children out of poverty than any other federalprogram. Together, the CTC and the EITC have reduced the poverty rate by8.3 percent.

Permanently extending and indexing the Child Tax Credit willhelp millions of American families with children. Today, a family withone full-time minimum wage earner and two children receives a total child taxcredit of $1,812. If the CTC expansion ends, that credit would drop to$267, a $1,545 loss and the average family claiming the CTC will see theircredit drop by $854.