House votes to limit tax credit for immigrants
The House passed a bill yesterday that would gradually increase the popular child tax credit and make it available to more families with higher incomes.
However, millions of low-income families would lose the $1,000-a-child credit in 2018, when enhancements championed by President Obama are set to expire.
The bill also aims to make a dent in illegal immigration by prohibiting people without Social Security numbers from claiming a portion of the credit reserved for low-income families. The bill passed by a vote of 237-173.
House Republicans say the bill strengthens the tax credit by increasing it as inflation rises, and by making it available to more middle-income families.
“It is time we make some simple improvements to the child tax credit, so it keeps up with the cost of raising children,” said Rep. Dave Camp a Michigan Republican, chairman of the tax-writing House Ways and Means Committee.
The White House threatened to veto the bill, saying it favors high-income taxpayers over the poor, while adding $90 billion to the budget deficit over the next decade.
Five million of the poorest low-income families would lose the credit in 2018, the White House said. An additional 6 million low-income families would see their tax credits reduced.
The bill “would raise taxes for millions of struggling working families while enacting expensive new tax cuts without offsetting their costs, reflecting fundamentally misplaced priorities,” the White House said.
House Republicans dispute the Democrats’ argument, saying the bill is silent on low-income families. Current law calls for the enhancement for low-income income families to expire.