Contact: Jon Peacock 608-284-0580 x 307
Congressional leaders contend that working families would benefit from their tax cut plan because of an increase in the maximum value of the federal Child Tax Credit (CTC). However, that part of the bill completely excludes 159,000 children in Wisconsin whose parents work in low-paying jobs, according to a new analysis.
House leaders intend to hold a floor vote on their tax plan this week. The Senate tax plan is likely to be voted on after Thanksgiving.
A new report from the Washington, DC-based Center on Budget and Policy Priorities concludes that about one in three Wisconsin children in working families would either be excluded entirely or only partially benefit from the proposed increase in the CTC.
Nationally, roughly 23 million children would be partially or entirely excluded from the House Republicans’ plan, even as it expands the credit to families with incomes between $150,000 and $294,000. For example, a single mom of two working full-time at the minimum wage would get no benefit from the CTC expansion under the House Republican plan, but a married couple earning $230,000 would receive a new $3,200 benefit.
“Helping families who are struggling to make ends meet gives children a better shot at success. Research indicates that boosting parents’ incomes helps kids do better in school, and makes them healthier and more likely to go to college,” said Jon Peacock, director of the Wisconsin Budget Project. “Leaving out low-income working families, while expanding the credit to include more high income families, makes no sense.”