Mr. Speaker, I thank the gentleman for yielding and thank him for his leadership on this particular issue. We are a Nation that is struggling to make ends meet. The rising cost of everyday essentials, such as gas, groceries, and…
Mr. Speaker, I thank the gentleman for yielding and thank him for his leadership on this particular issue.
We are a Nation that is struggling to make ends meet. The rising cost of everyday essentials, such as gas, groceries, and electricity, all continue to rise, while household incomes remain stagnant.
There is no need to compound these problems with a Tax Code that punishes working parents by making it hard for them to keep up with the rising costs of raising a family.
The child tax credit was originally enacted in 1997 to ease the financial burden on families. Over time, the original credit amount was eventually increased and made partially refundable to help more families. However, since being expanded to $1,000 back in 2004, the child tax credit has failed to keep pace with costs.
Kids are expensive: diapers and car seats, haircuts, toothbrushes, books, clothes, and even sporting equipment. A recent study by the U.S. Department of Agriculture estimated that for a middle-income couple, it will cost over $240,000 to raise a child until 18 years of age.
I did the calculation for a middle-income two-parent household with three kids. According to the USDA calculator, the average household will spend $3,500 on food, $4,000 on transportation, $1,600 on clothing, and nearly $7,000 on child care and education for a total of over $30,000 annually.
Contributing the most to these rising costs are items such as spending on education and child care. In fact, since 2000, the cost of child care has increased twice as fast as the median income of families with children.
The Child Tax Credit Improvement Act, which is before us today, indexes the credit and the limitations to inflation to help parents keep more of their hard-earned money to use for the mounting expenses of parenting.
In addition to indexing the credit and limits to inflation, the bill also eliminates the marriage penalty by increasing the joint filing phaseout threshold to exactly double that of single filers. Removing marriage penalties and indexing for inflation have become a recognized part of our tax system.
The lack of indexing of a particular provision to inflation means that a provision is worth less to taxpayers every year. In the case of the child tax credit, this means working low and middle class families.
This legislation essentially removes the annual hidden tax placed on these families and recognizes that $1 of income in 1998 and in 2004 is not the same as $1 of income in 2014.
Similar tax credits that Congress has smartly indexed to inflation include the adoption tax credit, the earned income tax credit, and education tax credit. All of these tax credits make it easier on working families to put money aside and save for the future.
Increasing the phaseout level is a family-friendly change that greatly simplifies the code for middle class parents currently forced to perform a complicated computation and increases the fairness across the Code.
It also includes an antifraud provision championed by Congressman Sam Johnson, seeking to curtail tax fraud by requiring a Social Security number to be eligible for this tax credit. It is a simple principle also supported by Democrat United States Senator Claire McCaskill. Simply put, if you are breaking the law by working illegally in our country, you should not be getting a tax benefit for it.
This is sensible legislation that will help hardworking families keep more of their paychecks and help pay for the rising costs of raising a family. A vote for this bill will give Americans more freedom to save their own money and help struggling families who are just trying to get by.
I urge everyone to support H.R. 4935, the Child Tax Credit Improvement Act of 2014, because when working families succeed, the Nation's economy succeeds.
I reserve the balance of my time.
Mr. Speaker, at this time, I yield as much time as he may consume to the gentleman from Texas (Mr. Sam Johnson), a distinguished member of the Ways and Means Committee.
Mr. Speaker, I yield myself such time as I may consume.
I want to commend the gentleman from Washington for recognizing that this does put more money back in the pockets of hardworking Americans, but I just want to correct the record that this is in no way, shape, or form a tax increase.
There certainly have been a lot of inaccuracies and highly misleading statements from the other side of the aisle about this bill this morning. This bill does not end the credit for low-income working families. It is not a tax increase on them. It certainly does not cast millions of children deeper into poverty.
The tax provision in this bill originated from the stimulus bill. It was extended back in 2013 for 5 additional years. So it is not currently expiring, and it will not expire until 2018.
All H.R. 4935 does is it keeps that in place and does not even address that particular provision. It does not call for ending that provision. It does not call for reducing or altering that provision. Rather, this bill deals with the immediate concern, and that is the erosion of the value of the child tax credit for every family struggling today.
So following this absurd logic from the other side, every single bill and amendment that comes to the House floor that fails to address or does not extend their provision is a tax increase.
This bill before us today will have and deserves bipartisan support. It is unfortunate that some have resorted to recycled talking points and outright falsehoods to conjure up some reason to oppose the bill.
I reserve the balance of my time.
Mr. Speaker, I yield such time as he may consume to the gentleman from Michigan (Mr. Camp), the distinguished chairman of the Ways and Means Committee.
Mr. Speaker, I yield myself such time as I may consume.
I am just puzzled by this logic that the minority is concerned about a provision that expires in 4 years. They are worried about that today, but yet they are not worried about the loss of buying power for hardworking American families starting next year. They are willing to give up helping families next year, and they want to debate an issue that we aren't going to even address for another 4 years.
As it relates to their charge that this in some way helps the wealthy, I would like to point out that a foundational principle of the Tax Code is that it should be, at worst, neutral toward the decision to get married. It should not be a deterrent. Certainly, it should not make taxpayers worse off merely by making the decision to marry and start a family. Marriage is beneficial to society and something that we have and should continue to encourage.
Removing the marriage penalty is about one thing, and that is fairness. This is especially true for today's two-earner households where both spouses have to work just in order to make ends meet.
Congress has had the wisdom to remove the marriage penalties from many other parts of the Tax Code, including the standard deduction. A deduction for married couples is twice the amount for single filers, and in tax brackets the income range of 10 to 15 percent brackets for couples is twice that of individuals, as it should be.
We are asking for that same parity to be afforded in the child tax credit.
I reserve the balance of my time.
Mr. Speaker, I continue to reserve the balance of my time.
Mr. Speaker, I continue to reserve the balance of my time.
Mr. Speaker, I am just amazed by the other side's doing time travel 4 years into the future when a lot of hardworking families are struggling every day--right now--to deal with this economy, and that needs to be the focus of this debate.
I yield such time as he may consume to the gentleman from Texas, Chairman Brady, a fine member of the House Ways and Means Committee.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I have no further speakers, and will be prepared to close.
I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume. One goal of tax policy is to strengthen the economy so that there are more jobs and bigger paychecks for American families. Today, we have an opportunity to put more money in the pockets of hardworking families.
This commonsense bill reforms the child tax credit so that it can keep up with the rising cost of living, and eliminates the current marriage tax penalty.
I have a letter of support that says it best, and I quote:
Representative Jenkins' bill indexes the credit and income
limits for inflation. Inflation erodes the value and
purchasing power of the U.S. dollar and, as a result, a
dollar is worth less today than it was years ago. This
important piece of legislation adjusts the credit for
inflation to ensure that the value of the credit continues to
maintain its value.
We know that family and marriage is beneficial to society,
and the Federal Government ought to promote economic policies
that allow families to thrive. This tax credit recognizes the
important contribution of the family and children to our
country and starts to address a problem with our Tax Code
today, the marriage penalty. A fair system of taxation does
not penalize marriage and family.
With that, I would ask the body to vote ``yes'' on H.R. 4935, the Child Tax Credit Improvement Act of 2014, to honor families with children.
Mr. Speaker, I yield back the balance of my time.