[Congressional Record (Bound Edition), Volume 145 (1999), Part 15]
[Extensions of Remarks]
[Page 21761]
[From the U.S. Government Publishing Office, www.gpo.gov]



             OPPOSING DELAY IN TAX BENEFITS TO WORKING POOR

                                 ______
                                 

                          HON. RICHARD E. NEAL

                            of massachusetts

                    in the house of representatives

                     Wednesday, September 15, 1999

  Mr. NEAL of Massachusetts. Mr. Speaker, recently a trial balloon 
involving a delay in earned income tax credit refunds has been floated 
by the majority party. The balloon needs to be popped immediately so we 
can move on to more serious solutions.
  The earned income tax credit is designed to provide a refund of 
payroll taxes to the working poor, thereby giving an income supplement 
as well as an extra work incentive. Under current law, most individuals 
receive an earned income credit in the form of a refund in May after 
they file their income taxes. The Republican proposal would single 
these refunds out to be paid over a 12-month period. This would result 
in a $7 billion saving for this fiscal year because about 25 percent of 
the total refund would be pushed into the next fiscal year. This $7 
billion would then be used, reportedly, to offset spending in the 
Labor-HHS Appropriations Bill.
  Mr. Speaker, I don't think it is fair for Republicans to deny working 
families a tax refund to pay for a shortfall of funds in an 
Appropriations Bill. I think there are better ways to find the money 
than to take refunds away from those who need them the most.
  It is not the fault of the working poor that Republicans put together 
an unrealistic budget resolution this spring, and are now desperate to 
find some way to implement it. But to lash out against those who need 
their tax refund the most is unconscionable. We should stick this idea 
where it belongs, in the trash can, and start to implement a bipartisan 
budget that will win broad support in the House.
  I would also note that given this time in the filing system, it is by 
no means clear that the changes necessary to delay earned income credit 
refunds for the working poor can be accomplished without significantly 
slowing down refunds for all other Americans. The current system does 
not distinguish between types of refunds, and it is possible that this 
proposal will result in all refunds having to be done manually, which 
will delay refunds for all. This is clearly not the intention, but bad 
proposals sometimes bring unexpected results and it would be better 
simply to move on to other solutions to our budget problems.

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