House Votes to Protect Families From Tax Hikes

May 21, 2004

WASHINGTON, D.C. - Congressman David Dreier (R-San Dimas), Chairman of the House Rules Committee, voted last night to approve a bill that will preserve child tax credit relief implemented in previous tax legislation. The Child Credit Preservation and Expansion Act of 2004, H.R. 4359, was approved with strong bipartisan support, 271-139.

"America's working families are helping to strengthen our economy thanks to the tax relief we've passed in recent years," Dreier said. "The last thing we need to is raise their taxes. It would hurt their pocketbooks, and it would hurt our economy. This legislation makes sense because it maintains what we know is working."

Without action by Congress, the child tax credit will drop from $1000 to $700 next year, unfairly penalizing families with children. The House plan will prevent an average tax hike of $610 on 30 million taxpayers with 49 million children.

Middle- and low- income families are protected from tax hikes under this plan. Under current law, the child credit is refundable up to 10 percent of earned income in excess of $10, 750. The plan raises the 10 percent rate to 15 percent this year - a year earlier than scheduled under current law. Military families will also benefit, as they will now be able to include combat pay when calculating the refundable child credit.