"I was a leading proponent of the increase in the child tax credit for low income families that was enacted as part of the 2001 tax bill and that is scheduled to go into effect in 2005," said Senator Collins. "I am very disappointed that an acceleration of the child tax credit for some low-income, working families was not part of the economic growth package approved last month by Congress. This legislation makes good sense: extending this tax credit to these hardworking families would help stimulate the economy."
The economic growth package bill signed into law last week increased the child credit from $600 to $1000 per child, a provision that is anticipated to benefit 25 million families, but some low-income families will not receive the benefit. The bipartisan legislation sponsored by Collins will make these low-income families eligible for the credit.
"More than 119,000 Mainers will benefit from the increase in the child tax credit we approved last month," said Collins. "I am committed to expanding the reach of this assistance to thousands more hardworking Maine families.
The bill will be financed by closing abusive loopholes similar to those used by Enron, and by allowing the Internal Revenue Service to adjust user fees to reflect costs it incurs when responding to requests for official opinion letters.