The Rubio-Lee Tax Credit is the Right Thing to Do

This is a pro-family common sense amendment every Republican should support.

President Trump has come out against the Rubio-Lee plan and the President needs to reconsider his opposition. Basically, Senators Rubio and Lee recognize that the tax plan actually does not do as much as has been claimed for the working poor with children. See, there are some people who make such little money that they don't actually pay income taxes. Since they don't pay income taxes they do not get the child tax credit even though they work. But what we all ignore is that these people are paying payroll taxes and the federal government treats payroll taxes like income taxes -- sending out IOU's on social security, etc.

Robert Verbruggen gives a great explanation of the plan at National Review. The Rubio-Lee plan would also finally get rid of th marriage penalty that causes a tax increase on couples merely for getting married. The reason the White House opposes this is because the Rubio-Lee plan would set the corporate tax rate at 22% instead of the White House's preferred 20% in order to pay for the benefit.

Folks, at a time of declining birth rates in America, if we are going to use the tax code to incentivize behaviors (we should not, but it does and that's reality), promoting children and families should be a chief goal of the tax code. The Rubio-Lee plan pays for itself and still would leave the United States with one of the most competitive corporate tax rates in the world. This should be a no brainer and it is a shame to see the supposedly "pro-family" GOP yet again turning their backs on the very working class families they claim to support.

Isn't this just an expanded EITC? And what are the policy arguments for encouraging higher rates of childbirth by net tax consumers?

Erick, I was speaking of the difference between what the WH wants and what Rubio wants. The WH wants 20% Rubio, 22% I was speaking of the raise from 20 to 22. Guess I need to write more clearly. Love the new format.

This does nothing to incentivize the working poor to better themselves by education and move up the economic scale so that they will no longer be the working poor. It incentivizes the working poor to have children they cannot afford to raise. It requires taxpayers to foot the bill for their retirement benefits, SS, Medicaid, Medicare. Just more redistribution of wealth. Lowering the corporate tax to 20% should lower the cost of goods produced, including what is paid by the working poor. This is just a gimmick for Rubio to get some free face time on TV. He, along with all politicians could care less about the working poor.

@Erick I stand corrected. Thanks. I was confusing tax credits with welfare benefits.

Trying to keep up with all the proposed changes is difficult. Payroll taxes are the taxes paid by the employers, one-half of Social Security/Medicare,, unemployment, and workers compensation. Withholdings are prepaid tax. There have been moves to raise the child tax credit to $1600 and $2000, plus include those in the womb. Then there is the child care credit. Don;t forget the Earned Income credit. The EIC is a refundable credit that is rife with fraud/ The other credits reduce tax to be paid. What is the total reduction based on having children? This is income redistribution. We have a debt caused by previous administrations.