Congressional negotiators beat back efforts yesterday to expand and preserve tax refunds for poor families, even as they added $13 billion in corporate tax breaks to a package of middle-class tax cuts that could come to a vote in the Senate today.Don't worry, poor kids are doing just fine.
The House-Senate negotiations concluded last night with the approval of a five-year $146 billion tax cut, the fourth tax cut in as many years. By the end of this week, Republican leaders expect to pass extensions of three tax cuts primarily aimed at middle-income taxpayers -- a $1,000-per-child tax credit, tax breaks for married couples and a 10 percent income-tax bracket that was expanded last year.
But the fight over the child tax refunds during the negotiations revealed a split among GOP tax writers.
Senate Finance Committee Chairman Charles E. Grassley (R-Iowa) sided with Democratic leaders in pushing for changes in the child tax credit to ensure that millions of poor families would not see their credits shrink or disappear next year.
House Majority Leader Tom DeLay (R-Tex.) and House Ways and Means Chairman Bill Thomas (R-Calif.) opposed the move, as did Sens. Don Nickles (R-Okla.) and Trent Lott (R-Miss.). That effectively scuttled changes to existing law.
Thursday, September 23, 2004
Posted by weinish at 10:47 AM