(Washington, D.C.)–Congressmen Jim Langevin and Patrick Kennedy today called for passage of  legislation that would increase the child tax credit for families who make between $10,500 and $26,625 per year.  Legislation recently forced through Congress by the Republican Leadership denied Rhode Island’s real working families this tax credit to make room for the President’s gift to the wealthy: a dividend tax cut.

 The Working Families Tax Credit Act will (H.R. 2286) will provide much needed relief for the families of 19 million children who receive no child tax credit benefits from the Republican tax cut.  This means 23,000 Rhode Island families, including 47,000 children, will now be eligible for up to $1000 per child, a tax credit not provided to low-income families under the Republican plan.   

 “This legislation corrects major mathematical and moral flaws in the Republican tax cut, which prevented millions of working American families, including members of the armed forces stationed in Iraq, from receiving a $1000 child tax credit and marriage penalty relief,” said Congressman Langevin.  “How dare anyone deny our men and women in uniform, and thousands of Rhode Island's hard-working families, the same tax relief as those earning six figures?”

 "It is ridiculous to argue that working families struggling in this economy don't make enough money to deserve tax relief, but that's just what the Republican leadership in Congress is saying,” said Congressman Kennedy.  “They're dead wrong -- nobody needs it more.  Our economic policy should be built around giving all families a fair chance at success, not hording opportunity for the chosen few, and this bill would be an important step in that direction."
 
 This legislation results in no cost to taxpayers nor does it contribute to record deficits.  Closing corporate loopholes used by corporations such as Enron will offset the tax credit.

This child tax credit provision was stripped from the Republican tax cut package in order to make room for a larger dividend tax cut which provides an average of more than $90,000 to the 200,000 taxpayers earning over $1 million annually. 

In addition, combat pay is not taxable, which could prevent some soldiers from being eligible for the additional $400 per child credit under the Republican plan.  The Working Families Tax Credit Act, however, ensures that pay received by brave and courageous members of the armed forces while serving in Iraq or other combat zones will not keep them from getting their share of the tax cut.

 “As unemployment rises, families are faced with difficult, heart-wrenching decisions,” added Langevin.  “It is time for Congress to do the right thing and pass this legislation to provide tax relief to those who need it most: Rhode Island’s working families, not Wall Street’s millionaires."

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