Rubio & Lee Continue Making Progress on Their Tax Credit Plan

Lee and Rubio make progress and may get the corporate rate even lower.

Senators Lee and Rubio look like they are willing to compromise to get their child tax credit plan passed. You'll recall that their plan would allow working class families who pay taxes, but who cannot get the child income tax credit, to still get a tax credit based on their payroll taxes. Their plan does not apply to people on government assistance.

They were going to pay for it based on reducing the corporate tax rate from 39% to 22% instead of to 20% They are signaling they are willing to find a different mechanism. This is a a pro-family plan the GOP should support in the Senate.

From Senator Rubio's office:

“Currently, our amendment would offset the additional middle class relief with a slight increase in the corporate tax rate. We support that pay-for and believe it gives our amendment a good chance to pass on the floor with bipartisan support. But as we have said all along, we are open to alternative offsets that would preserve the 20% corporate rate, which we support as much as our Republican colleagues. We continue to welcome any effort by Finance Committee members and Republican leaders to help us identify other pay-fors to offset an expansion of the child credit.”

I'm hearing they may use an offset in the estate tax instead of the corporate tax, which would actually be very reasonable and could probably get them some extra votes in the Senate. You can call your Senator to support the plan by texting CREDIT to 52886.

Don't like it. If you wanna cut taxes for middle class families, just cut the rate. Bad things happen when the government tries to get cute, and thinks it is smarter than it actually is.

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This is just welfare. It gives money to those who have not paid income tax. Saying that they pay 'payroll' taxes without pointing out that those taxes are supposed to cover Medicare and Social Security is in attempt to obscure the fact.

Don't build more refundable credits. Once the credits wipe out the tax, that is enough tax break. We already have enough problem with the earned income tax credit and fraud. Let the corporation have a tax break for dividends declared, and the dividends be taxed at the personal level. No double taxation.

Why does congress always have to offset by tax increase, instead of offset by spending cut?

This is a bad idea. This is another handout or entitlement justified by a credit off of the payroll tax. It is a handout because it is not an across the board cut in payroll taxes but only to those qualified by kids at home. It is therefore a redistribution because it draws from the general anticipated tax revenues to the government. Once these things are in place nobody will ever be able to take them back. This also goes against the grain of person responsibility. Furthermore, this is an increase in the currently proposed taxes to offset these credits. The child tax credit is already part of the plan and these two only want more. Mike has a local bias since his state has about 33 percent more children per family on average that the rest of the country. It is significant that a big portion of those qualifying for the child tax credits as proposed already pay no effective taxes at all. I have not seen Mike or Marco offer a single thing that they are willing to go on record to cut.

I think you have misstated the details of the bill. Just because someone is working does not mean they are paying any taxes except for the payroll and SS et. Somewhere between 43.5 and 48 percent do not pay taxes at all, even if they are working. With this bill, there will be even more not paying taxes because of the standard deduction increases and the changes in the tax tiers. Bad idea. Pro irresponsible families.

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