[Congressional Record Volume 147, Number 59 (Thursday, May 3, 2001)]
[Senate]
[Pages S4269-S4270]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE (for herself, Mr. Dodd, Mr. Jeffords, Mr. 
        Rockefeller, Mr. Bingaman, and Ms. Collins):
  S. 833. A bill to amend the Internal Revenue Code of 1986 to expand 
the child tax credit; to the Committee on Finance.
  Ms. SNOWE. Mr. President, I rise today to introduce the Child Tax 
Credit Expansion and Equity Act of 2001, with my good friend and 
colleague, the Senator from Connecticut, Mr. Dodd, and our other 
cosponsors Mr. Jeffords, Mr. Rockefeller, Mr. Bingaman, and Ms. 
Collins. This legislation would take an important first step towards 
helping those children who are most in need, by expanding the current 
Child Tax Credit and making its benefits more equitable.
  That I am here today introducing this bill is due in large part to 
the efforts of two other people. Thanks to the President's initiative 
to double the current child tax credit from $500 to $1,000. This effort 
has opened the door to addressing the cost borne by the parents in our 
society as they raise their children.
  Of course, there is a larger cost than just the monetary expense 
incurred in taking care of and raising children. However, what better 
way can we acknowledge this cost, and lessen parents' burden than to 
increase the child tax credit. My good friend, and colleague, 
Representative Connie Morella, from Maryland, recognized this and began 
an effort in the House of Representatives to address the current child 
tax credit inequity. I thank her for all of her good work and am happy 
to be able to work with her from this side of the Capitol to see that 
this issue is properly addressed.
  The President's proposal, while an important first step, doesn't do 
enough to help those who need it the most--our low and middle income 
families. But make no mistake it is thanks to the President's opening 
the door to the Child Tax Credit that we are here today to take that 
effort one step further and make this credit partially refundable.
  There are over 16 million children in poverty, 1 in every 4, whose 
families have no federal tax liability and therefore will receive no 
benefit from an increase in the child tax credit because it's not 
refundable. More than two-thirds of these children are in working 
families.
  There are an additional 7 million children who live in families that 
will not benefit from an increase in the child tax credit unless it's 
refundable due to their limited tax liability because they do not pay 
enough in federal taxes to get a $500 credit. Yet, these families pay 
taxes. They pay federal and state taxes, payroll taxes, gas taxes, 
phone taxes, sales taxes, property taxes and other taxes. 
Overwhelmingly, they represent working families. They have no federal 
tax liability and therefore without this change to the child tax credit 
they will receive no benefit from an increased child tax credit.
  There may be some who will say that unless you can do it all don't do 
any of it. There are some who will say that only a fully refundable 
credit is acceptable. However, I respectfully disagree. I have served 
in Congress for over two decades and I have learned that you should 
never pass up the opportunity to make a difference. I have long made

[[Page S4270]]

improving the lives of our children a priority.
  The Child Tax Credit Expansion and Equity Act, would expand the child 
tax credit from $500 to $1,000 as proposed by the President, but it 
would make the first $500 refundable. Families which would otherwise 
receive nothing, would have a $500 refundable credit to help mitigate 
the costs of raising their children today.
  This bill just makes good sense. It makes sense that every family 
with children should be eligible for the child tax credit. It makes 
good sense to expand the number of families that qualify for the credit 
instead of just giving more money to those families that already 
benefit. It makes good sense and it does so in a simple and fair way. 
It does not create another complicated tax form. The amount of the 
credit is based on the number of dependents, period. It fits into the 
current tax code and doesn't require a complex calculation or a degree 
in accounting. This is good public policy.
  If timing is everything, then this is the time to do this for some of 
our most needy families. America today is prosperous, healthy and 
strong. And yet, too many of our children, our most vulnerable of 
citizens are in need of assistance. When the federal government is 
expecting the largest surplus ever, shouldn't we make an investment in 
our future and help those who need it most.
  I urge my colleagues to consider this legislation and work with me 
and the cosponsors to ensure that the child tax credit is assisting the 
most children possible.
  Mr. DODD. Mr. President, I am pleased to join with my colleague from 
Maine, Senator Snowe, in introducing legislation to make the child tax 
credit refundable.
  Throughout America, families with children struggle with the extra 
cost associated with raising children today.
  Early in the President's campaign, he proposed to increase the 
current child tax credit from $500 to $1,000. While a reduction in tax 
rates is helpful to families, an increase in the per child tax credit 
is especially helpful because it recognizes that there are costs 
associated with raising a family.
  During the President's inaugural remarks, he said, ``America at its 
best, is compassionate. In the quiet of American consciences, we know 
that deep, persistent poverty is unworthy of our nation's promise.''
  With much applause, the President continued, ``And whatever our views 
of its cause, we can agree that children at risk are not at fault.'' 
``Americans in need are not strangers, they are citizens, not problems, 
but priorities.
  While I very much support the President's proposal to increase the 
child tax credit from $500 to $1,000, it makes sense to me that all 
families, not just families with tax liability, should receive such 
assistance.
  Because the President's tax credit is not refundable, over 16 million 
children are left behind. They live in families with no federal tax 
liability and therefore will receive no benefit from an increase in the 
child tax credit because it's not refundable--it's not available to 
families without federal tax liability.
  An additional 7 million children live in families who will not 
benefit from an increase in the child tax credit unless it's refundable 
because their current credit would not increase due to limited tax 
liability.
  Yet, these families pay taxes. They pay federal and state taxes, 
payroll taxes, gas taxes, phone taxes, and other taxes. Overwhelmingly, 
they represent working families. Yet, at $12,000 or $20,000, they have 
no federal tax liability and therefore unless the child tax credit is 
made refundable, they will receive no benefit from an increased child 
tax credit.
  The legislation we are introducing today will increase the current 
child tax credit from $500 to $1,000 as the President proposed, but 
would also provide a refundable credit of $500 per child for those 
families without federal income tax liability. This reform will lift 
one million families out of poverty.
  Often, people talk of the complexity of the tax code. The beauty of 
making the child tax credit refundable is its simplicity. All families, 
regardless of income, would receive the credit--no marriage penalty, no 
cliff, no complicated phase-outs.
  Back in 1991, the Bipartisan National Children's Commission, chaired 
by my colleague from West Virginia, Senator Rockefeller, recommended 
enacting a refundable child tax credit. After a decade, the time is 
right. We have the resources. And, I hope and believe, we have the 
will.
  Making the child tax credit refundable is simply one of the most 
effective antipoverty strategies in years.
  I urge my colleagues to join with us today in supporting this 
legislation.

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