Washington, D.C.– In a bipartisan vote, the U.S. House of Representatives passed H.R. 4935, the Child Tax Credit Improvement Act, which eliminates the ‘marriage penalty’ for individuals claiming the child tax credit and permanently extends the credit for the first time. Congressman Erik Paulsen (MN-03) voted in favor of the legislation. Under current law, individuals may claim a $1,000 tax credit for each child under the age of 17. For single filers, the tax credit is phased out incrementally once an individual’s income exceeds $75,000, but joint filers are phased out starting at incomes over $110,000. H.R. 4935 raises the limit for joint filers to $150,000 – double the amount for single filers – eliminating what is commonly known as the marriage penalty.

“Eliminating the marriage penalty and indexing the child tax credit to inflation will help hardworking families,” said Paulsen. “While the costs of clothing, food, and childcare have risen over the last decade, the child tax credit has remained the same. The House is taking action to ensure this important credit keeps pace with rising costs.“

In addition, phase-out income levels and payments would be indexed to inflation. Over the last decade, clothing costs have risen 89%, food prices have gone up 21%, and childcare and education costs are 107% higher. However, the child tax credit has not increased during that time.

H.R. 4935 also takes important steps to reduce the amount of fraud and abuse involved with the child tax credit. Current estimates suggest that over $13 billion of refundable tax credit payments are improperly made each year.

Paulsen, a champion of small business and advocate of free enterprise, entrepreneurship, and innovation, serves on the House Ways and Means Committee, the bicameral Joint Economic Committee, and is co-chair of the Congressional Medical Technology Caucus.

For more information on Congressman Paulsen’s work in Congress visit paulsen.house.gov.

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