[Congressional Record Volume 146, Number 96 (Friday, July 21, 2000)]
[Senate]
[Page S7448]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ABRAHAM:
  S. 2903. A bill to amend the Internal Revenue Code of 1986 to expand 
the child tax credit; to the Committee on Finance.


                   expansion of the child tax credit

  Mr. ABRAHAM. Mr. President, I rise today to introduce legislation to 
provide a $1,000 per child tax credit for America's working families.
  Mr. President, this legislation builds on the $500 per child tax 
credit passed in 1997. The passage of the $500 per child tax credit was 
the culmination of an effort that began in 1994 with a proposal 
contained in the ``Contract with America.'' A child tax credit 
provision also was part of the Balanced Budget Act of 1995 which 104th 
Congress passed, but President Clinton vetoed.
  Even with the $500 per child tax credit in place, today's total tax 
burden on families is still far too high. During this era of budget 
surpluses, we must remember that these surplus funds are tax 
overpayments that should be returned to the people who overpaid them, 
and not spent on wasteful government programs. American families will 
spend the money better.
  The child tax credit will help hard working families who pay federal 
income tax and have children to support. Under this proposal, a working 
family with two children will receive $2,000 in the form of a tax 
credit to help pay their children's health, education and food 
expenses. Being a parent is not always easy. It becomes even more 
difficult if a family has trouble paying for necessities such as food, 
clothes, education, and health care for their children. This tax credit 
will help those families.
  Mr. President, increasing the child tax credit to $1,000 is a 
statement by our government and our society that all our families and 
all of our children will not be left behind. Increasing the $500 per 
child tax credit to $1,000 would provide parents more than 38 million 
children, including roughly 1.5 million of my constituents in Michigan.
  With that in mind, I urge my colleagues to join me in supporting 
American families by supporting this legislation.
  Mr. President, I ask unanimous consent that the full text be printed 
in the Record and yield the floor.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2903

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. EXPANSION OF CHILD TAX CREDIT.

       (a) Increase in Amount Allowed.--Subsection (a) of section 
     24 of the Internal Revenue Code of 1986 (relating to 
     allowance of credit) is amended by striking ``$500 ($400 in 
     the case of taxable years beginning in 1998)'' and inserting 
     ``$1,000''.
       (b) Repeal of Phaseout of Credit.--Section 24 of such Code 
     is amended by striking subsection (b) and redesignating 
     subsections (c), (d), (e), and (f), as subsections (b), (c), 
     (d), and (e), respectively.
       (c) Conforming Amendments.--
       (1) Section 32(n)(1)(B)(ii) of such Code is amended by 
     striking ``section 24(d)'' and inserting ``section 24(c)''.
       (2) Section 501(c)(26) of such Code is amended by striking 
     ``section 24(c)'' and inserting ``section 24(b)''.
       (3) Section 6213(g)(2)(I) of such Code is amended by 
     striking ``section 24(e)'' and inserting ``section 24(d)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.
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