10.02.2005
Study Finds Many Children Don't Benefit From Credits (NYTimes.com)
By JASON DePARLE
Published: October 2, 2005
WASHINGTON, Oct. 1 - More than a quarter of American children - and half of black children - belong to families too poor to fully qualify for the $1,000-a-year child tax credit, which President Bush signed four years ago and has cited in arguing that his program of sweeping tax cuts helps low-income families, a new study has found.
The numbers come from an analysis by the Tax Policy Center, a nonpartisan group in Washington, and cast light on an important benefit for working families at a time when the hurricane damage in the Gulf Coast has Mr. Bush and others vowing to address poverty and racial division.
With an annual value of $47 billion, the credit is the government's largest children's subsidy and one that has provoked sharp partisan fights. Many conservatives, viewing it solely as a tax cut, want to reserve the credit for families that owe federal income tax. Many liberals, viewing it as a broader children's allowance, want to extend it to poorer workers, who they say need it most.
In 2001, Mr. Bush signed a compromise that extends the credit, in the form of an annual government check, to some working families that earn too little to owe income tax. Still, the study found that the families of 19.5 million children were too poor to receive the full $1,000 benefit. About half get a partial benefit, and half get nothing. More than three-quarters have parents who work.
While 18 percent of white children are in families too poor to claim the full credit, the figure is 50 percent among black children and 47 percent among Hispanics. The credit pays an average of $721 a year to white children, $564 a year to black children and $638 a year to Hispanic children.
(More ... Study Finds Many Children Don't Benefit From Credits - New York Times) ¶ 13:54
Published: October 2, 2005
WASHINGTON, Oct. 1 - More than a quarter of American children - and half of black children - belong to families too poor to fully qualify for the $1,000-a-year child tax credit, which President Bush signed four years ago and has cited in arguing that his program of sweeping tax cuts helps low-income families, a new study has found.
The numbers come from an analysis by the Tax Policy Center, a nonpartisan group in Washington, and cast light on an important benefit for working families at a time when the hurricane damage in the Gulf Coast has Mr. Bush and others vowing to address poverty and racial division.
With an annual value of $47 billion, the credit is the government's largest children's subsidy and one that has provoked sharp partisan fights. Many conservatives, viewing it solely as a tax cut, want to reserve the credit for families that owe federal income tax. Many liberals, viewing it as a broader children's allowance, want to extend it to poorer workers, who they say need it most.
In 2001, Mr. Bush signed a compromise that extends the credit, in the form of an annual government check, to some working families that earn too little to owe income tax. Still, the study found that the families of 19.5 million children were too poor to receive the full $1,000 benefit. About half get a partial benefit, and half get nothing. More than three-quarters have parents who work.
While 18 percent of white children are in families too poor to claim the full credit, the figure is 50 percent among black children and 47 percent among Hispanics. The credit pays an average of $721 a year to white children, $564 a year to black children and $638 a year to Hispanic children.
(More ... Study Finds Many Children Don't Benefit From Credits - New York Times) ¶ 13:54
