Low-Income Kids’ Tax Credit Threatened – Again

CTCAbout 3 million children from some of the nation’s poorest families could lose billions of dollars of targeted assistance through a proposal that’s resurfaced in Congress.

The plan would bar Additional Child Tax Credit access for households who file their taxes without a Social Security Number, a change that would hit immigrant families particularly hard. A wide variety of groups – from the U.S. Conference of Catholic Bishops to the National Immigration Law Center – have opposed the idea for endangering critical resources for many families who struggle the most.

“This is money that parents need to keep their kids fed and clothed, housed and healthy – money that also helps local economies when families are spending it at neighborhood businesses,” NCTC wrote to Congress in a letter co-signed by 60 other organizations when the issue last came up, in February.

The matter arose again this past week when Republicans on the U.S. House Ways and Means Committee signed-off on the proposal in conjunction with the budget their chamber recently approved – a plan that calls for a number of deep cuts in supports for low- and moderate-income Americans in FY2013.

Ways and Means similarly has approved plans for:

  • Eliminating Social Services Block Grant support for services ranging from child care for low-income kids to Meals on Wheels assistance for the elderly
  • Increasing tax-time repayment charges for many people receiving insurance assistance under health care reforms, if their low incomes increase during the year due to such factors as marriage or a job promotion – a change that could jeopardize health coverage for about 350,000 people

Still other budget-related measures under consideration in the House would slash the Supplemental Nutrition Assistance Program (formerly known as food stamps). Even if these proposals pass the House, they could meet strong opposition in the Senate; advocates for low- and moderate-income, working families should be ready to ensure that’s the case as budget considerations unfold.

By Sean Noble, Director of Public Policy & Research

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About National Community Tax Coalition

National Community Tax Coalition (NCTC) is the nation's largest, most comprehensive membership organization for community-based organizations offering free tax and financial services to low-income working families.

Posted on April 20, 2012, in NCTC and tagged , , . Bookmark the permalink. 1 Comment.

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