- Nov 5, 2012
- Reaction score
- Lee-Rubio creates a new $2,500 Child Tax Credit to complement the current child credit. TF says the new credit “cuts taxes for most taxpayers.” But it would exclude many working-poor families. The new credit is refundable only up to the sum of total income and payroll taxes after applying all other credits, such as the Earned Income Tax Credit (EITC) and existing Child Tax Credit. After these credits, most low-income working families will have no net federal income and payroll tax liability and consequently won’t qualify for the new CTC. In other words, its design excludes most low-income working families.