Rep. Rosa DeLauro (D-Conn.) and members of the Democratic Women's Conference hold their news conference about the care economy on July 1, 2021, in the U.S. Capitol.
DeLauro Pours Cold Water on Child Credit Boost in Exchange for Corporate Tax Giveaway
"At a time when a majority of American voters believe tax on big corporations should be increased, there is no reason we should be providing corporations a tax cut while only giving families pennies," said the lawmaker.
Some economic justice groups this week are pushing for the passage of a $78 billion bipartisan tax package that includes an expansion of the child tax credit—but one lawmaker who has made the credit one of her signature issues for years said Monday that the legislation does not go far enough to support families in need, especially considering the corporate tax breaks it includes.
As U.S. House Speaker Mike Johnson (R-La.) said the bill is expected to come to the House floor this week under "suspension of the rules," an expedited maneuver requiring the approval of two-thirds of members for passage, U.S. Rep. Rosa DeLauro (D-Conn.) said the bill "fails on equity" and leaves out too many struggling American families.
DeLauro released a fact sheet showing how the bill, negotiated by Rep. Jason Smith (R-Mo.) and Sen. Ron Wyden (D-Ore.), "falls far short of comparing to the gains made under the American Rescue Plan (ARP)," which in 2021 helped slash childhood poverty by about 30% with its inclusion of an enhanced child tax credit (CTC).
With Republicans insisting on work and minimum income requirements for the version of the CTC included in the tax package—to "safeguard" against undocumented immigrants and "ineligible persons" benefiting from the bill, according to the House Ways and Means Committee—"families with little-to-no income are left behind from the full child tax credit, while allowing a single parent making $200,000 or a married couple making $400,000 to receive the full $2,000 credit," notes DeLauro's fact sheet.
The ARP included all but the highest earners in the enhanced CTC, which increased the maximum credit amount to $3,000-$3,600 per child depending on the child's age and issued half of the credit on a monthly basis, enabling families to use the money for everyday necessities.
Falling short of the credit amount included in the ARP, the Wyden-Smith plan would afford families a maximum of $2,100 per child and would not provide payments to families on a monthly basis.
The tax deal is estimated to lift "up to 400,000 kids" out of poverty, said DeLauro, while "93% of kids in the lowest quintile (the poorest 1/5th of children in the country) will continue to be left behind—meaning they will not receive the full credit."
Last week DeLauro called on her fellow Democrats to "fight to ensure our families aren't sold out for profits" and told The Connecticut Mirror the bill has "serious room for improvement."
While falling short on providing economic support for families paying for groceries, childcare, healthcare, and other essentials, the Wyden-Smith deal "locks in $600 billion in tax cuts for businesses," according to Smith.
The GOP aims to make those cuts permanent, making the three-year cost "four times higher than the child tax credit," DeLauro noted.
"This is not parity," said the congresswoman, adding that a research and development tax credit for corporations will be made retroactive "under the guise of incentivizing R&D."
"It is virtually impossible to incentivize action for anything retroactively," said DeLauro. "While the CTC phases-in, corporations will get their tax cuts on the first dollar. Families will not be getting any additional child tax credit retroactively to 2022, like the corporations are."
The tax deal "delivers huge tax cuts for giant corporations while denying middle-class families the economic security they had under the expanded, monthly child tax credit," said DeLauro. "It also leaves the poorest families behind because of a policy choice. At a time when a majority of American voters believe tax on big corporations should be increased, there is no reason we should be providing corporations a tax cut while only giving families pennies."
The Pew Research Center found last year that 61% of Americans feel corporations don't pay their fair share. Nearly two-thirds said tax rates on large corporations should be raised; 39% said by "a lot," while 26% said by "a little" and just 14% said they should be lowered.
Some of DeLauro's colleagues have suggested any expansion of the CTC should be passed, with Sen. Richard Blumenthal (D-Conn.) telling The Mirror he was "less than ecstatic" that the credit is not completely expanded but that he would "rather see this provision enacted than none at all."
Another Connecticut Democrat, Sen. Chris Murphy, said he would consult "the mother of the child tax credit"—DeLauro.
"I'm going to continue to work to improve this legislation before it's considered on the House floor because I believe that families and children need a strong child tax credit," DeLauro told the outlet. "I'm opposed to this bill in its current form. Corporations get everything they asked for and children got pennies."
Urgent. It's never been this bad.
Dear Common Dreams reader, It’s been nearly 30 years since I co-founded Common Dreams with my late wife, Lina Newhouser. We had the radical notion that journalism should serve the public good, not corporate profits. It was clear to us from the outset what it would take to build such a project. No paid advertisements. No corporate sponsors. No millionaire publisher telling us what to think or do. Many people said we wouldn't last a year, but we proved those doubters wrong. Together with a tremendous team of journalists and dedicated staff, we built an independent media outlet free from the constraints of profits and corporate control. Our mission from the outset was simple. To inform. To inspire. To ignite change for the common good. Building Common Dreams was not easy. Our survival was never guaranteed. When you take on the most powerful forces—Wall Street greed, fossil fuel industry destruction, Big Tech lobbyists, and uber-rich oligarchs who have spent billions upon billions rigging the economy and democracy in their favor—the only bulwark you have is supporters who believe in your work. But here’s the urgent message from me today. It’s never been this bad out there. And it’s never been this hard to keep us going. At the very moment Common Dreams is most needed and doing some of its best and most important work, the threats we face are intensifying. Right now, with just three days to go in our Spring Campaign, we're falling short of our make-or-break goal. When everyone does the little they can afford, we are strong. But if that support retreats or dries up, so do we. Can you make a gift right now to make sure Common Dreams not only survives but thrives? There is no backup plan or rainy day fund. There is only you. —Craig Brown, Co-founder |
Some economic justice groups this week are pushing for the passage of a $78 billion bipartisan tax package that includes an expansion of the child tax credit—but one lawmaker who has made the credit one of her signature issues for years said Monday that the legislation does not go far enough to support families in need, especially considering the corporate tax breaks it includes.
As U.S. House Speaker Mike Johnson (R-La.) said the bill is expected to come to the House floor this week under "suspension of the rules," an expedited maneuver requiring the approval of two-thirds of members for passage, U.S. Rep. Rosa DeLauro (D-Conn.) said the bill "fails on equity" and leaves out too many struggling American families.
DeLauro released a fact sheet showing how the bill, negotiated by Rep. Jason Smith (R-Mo.) and Sen. Ron Wyden (D-Ore.), "falls far short of comparing to the gains made under the American Rescue Plan (ARP)," which in 2021 helped slash childhood poverty by about 30% with its inclusion of an enhanced child tax credit (CTC).
With Republicans insisting on work and minimum income requirements for the version of the CTC included in the tax package—to "safeguard" against undocumented immigrants and "ineligible persons" benefiting from the bill, according to the House Ways and Means Committee—"families with little-to-no income are left behind from the full child tax credit, while allowing a single parent making $200,000 or a married couple making $400,000 to receive the full $2,000 credit," notes DeLauro's fact sheet.
The ARP included all but the highest earners in the enhanced CTC, which increased the maximum credit amount to $3,000-$3,600 per child depending on the child's age and issued half of the credit on a monthly basis, enabling families to use the money for everyday necessities.
Falling short of the credit amount included in the ARP, the Wyden-Smith plan would afford families a maximum of $2,100 per child and would not provide payments to families on a monthly basis.
The tax deal is estimated to lift "up to 400,000 kids" out of poverty, said DeLauro, while "93% of kids in the lowest quintile (the poorest 1/5th of children in the country) will continue to be left behind—meaning they will not receive the full credit."
Last week DeLauro called on her fellow Democrats to "fight to ensure our families aren't sold out for profits" and told The Connecticut Mirror the bill has "serious room for improvement."
While falling short on providing economic support for families paying for groceries, childcare, healthcare, and other essentials, the Wyden-Smith deal "locks in $600 billion in tax cuts for businesses," according to Smith.
The GOP aims to make those cuts permanent, making the three-year cost "four times higher than the child tax credit," DeLauro noted.
"This is not parity," said the congresswoman, adding that a research and development tax credit for corporations will be made retroactive "under the guise of incentivizing R&D."
"It is virtually impossible to incentivize action for anything retroactively," said DeLauro. "While the CTC phases-in, corporations will get their tax cuts on the first dollar. Families will not be getting any additional child tax credit retroactively to 2022, like the corporations are."
The tax deal "delivers huge tax cuts for giant corporations while denying middle-class families the economic security they had under the expanded, monthly child tax credit," said DeLauro. "It also leaves the poorest families behind because of a policy choice. At a time when a majority of American voters believe tax on big corporations should be increased, there is no reason we should be providing corporations a tax cut while only giving families pennies."
The Pew Research Center found last year that 61% of Americans feel corporations don't pay their fair share. Nearly two-thirds said tax rates on large corporations should be raised; 39% said by "a lot," while 26% said by "a little" and just 14% said they should be lowered.
Some of DeLauro's colleagues have suggested any expansion of the CTC should be passed, with Sen. Richard Blumenthal (D-Conn.) telling The Mirror he was "less than ecstatic" that the credit is not completely expanded but that he would "rather see this provision enacted than none at all."
Another Connecticut Democrat, Sen. Chris Murphy, said he would consult "the mother of the child tax credit"—DeLauro.
"I'm going to continue to work to improve this legislation before it's considered on the House floor because I believe that families and children need a strong child tax credit," DeLauro told the outlet. "I'm opposed to this bill in its current form. Corporations get everything they asked for and children got pennies."
- Lawmakers Reach Deal to Expand Child Tax Credit—In Exchange for Corporate Tax Cuts ›
- McConnell Hails 'Strong Outcome' for GOP as Omnibus Excludes Poverty-Cutting Child Tax Credit ›
- White House Signals It Would Accept Work Requirements in Child Tax Credit Revival ›
Some economic justice groups this week are pushing for the passage of a $78 billion bipartisan tax package that includes an expansion of the child tax credit—but one lawmaker who has made the credit one of her signature issues for years said Monday that the legislation does not go far enough to support families in need, especially considering the corporate tax breaks it includes.
As U.S. House Speaker Mike Johnson (R-La.) said the bill is expected to come to the House floor this week under "suspension of the rules," an expedited maneuver requiring the approval of two-thirds of members for passage, U.S. Rep. Rosa DeLauro (D-Conn.) said the bill "fails on equity" and leaves out too many struggling American families.
DeLauro released a fact sheet showing how the bill, negotiated by Rep. Jason Smith (R-Mo.) and Sen. Ron Wyden (D-Ore.), "falls far short of comparing to the gains made under the American Rescue Plan (ARP)," which in 2021 helped slash childhood poverty by about 30% with its inclusion of an enhanced child tax credit (CTC).
With Republicans insisting on work and minimum income requirements for the version of the CTC included in the tax package—to "safeguard" against undocumented immigrants and "ineligible persons" benefiting from the bill, according to the House Ways and Means Committee—"families with little-to-no income are left behind from the full child tax credit, while allowing a single parent making $200,000 or a married couple making $400,000 to receive the full $2,000 credit," notes DeLauro's fact sheet.
The ARP included all but the highest earners in the enhanced CTC, which increased the maximum credit amount to $3,000-$3,600 per child depending on the child's age and issued half of the credit on a monthly basis, enabling families to use the money for everyday necessities.
Falling short of the credit amount included in the ARP, the Wyden-Smith plan would afford families a maximum of $2,100 per child and would not provide payments to families on a monthly basis.
The tax deal is estimated to lift "up to 400,000 kids" out of poverty, said DeLauro, while "93% of kids in the lowest quintile (the poorest 1/5th of children in the country) will continue to be left behind—meaning they will not receive the full credit."
Last week DeLauro called on her fellow Democrats to "fight to ensure our families aren't sold out for profits" and told The Connecticut Mirror the bill has "serious room for improvement."
While falling short on providing economic support for families paying for groceries, childcare, healthcare, and other essentials, the Wyden-Smith deal "locks in $600 billion in tax cuts for businesses," according to Smith.
The GOP aims to make those cuts permanent, making the three-year cost "four times higher than the child tax credit," DeLauro noted.
"This is not parity," said the congresswoman, adding that a research and development tax credit for corporations will be made retroactive "under the guise of incentivizing R&D."
"It is virtually impossible to incentivize action for anything retroactively," said DeLauro. "While the CTC phases-in, corporations will get their tax cuts on the first dollar. Families will not be getting any additional child tax credit retroactively to 2022, like the corporations are."
The tax deal "delivers huge tax cuts for giant corporations while denying middle-class families the economic security they had under the expanded, monthly child tax credit," said DeLauro. "It also leaves the poorest families behind because of a policy choice. At a time when a majority of American voters believe tax on big corporations should be increased, there is no reason we should be providing corporations a tax cut while only giving families pennies."
The Pew Research Center found last year that 61% of Americans feel corporations don't pay their fair share. Nearly two-thirds said tax rates on large corporations should be raised; 39% said by "a lot," while 26% said by "a little" and just 14% said they should be lowered.
Some of DeLauro's colleagues have suggested any expansion of the CTC should be passed, with Sen. Richard Blumenthal (D-Conn.) telling The Mirror he was "less than ecstatic" that the credit is not completely expanded but that he would "rather see this provision enacted than none at all."
Another Connecticut Democrat, Sen. Chris Murphy, said he would consult "the mother of the child tax credit"—DeLauro.
"I'm going to continue to work to improve this legislation before it's considered on the House floor because I believe that families and children need a strong child tax credit," DeLauro told the outlet. "I'm opposed to this bill in its current form. Corporations get everything they asked for and children got pennies."
- Lawmakers Reach Deal to Expand Child Tax Credit—In Exchange for Corporate Tax Cuts ›
- McConnell Hails 'Strong Outcome' for GOP as Omnibus Excludes Poverty-Cutting Child Tax Credit ›
- White House Signals It Would Accept Work Requirements in Child Tax Credit Revival ›