Posted on: Monday, June 9, 2003

EDITORIAL
Congress must give tax credit to poor

U.S. Senate Republicans have displayed a glimmer of conscience, making them paragons of magnanimity compared to their House counterparts, who have no shame whatever.

Barraged by complaints that the working poor did not benefit from the new tax cut signed into law at the end of last month by President Bush, the Senate moved quickly to extend a $1,000-per-child tax credit to low-income families representing 12 million children.

The law increases the credit from $600 to $1,000, making it available, all or in part, to couples earning between $26,625 and $150,000.

The original Senate version of the bill also included the working poor — couples earning as little as $10,500 a year. But that provision was stripped out in House-Senate conference.

It was no accident. "There are a lot of things that are more important than that," said Tom DeLay, House majority leader.

Such as, evidently, the "Hummer deduction," now law, which allows business owners to deduct up to $100,000 for a vehicle as long as it's a really big one.

But because of loopholes in the corporate tax law, many profitable corporations pay little or no taxes. Its conscience showing again, the Senate intended that dividends from such companies wouldn't enjoy the lower dividend tax rate.

House Republicans stripped away that provision, too. Some corporations won't be taxed — at all.

Meanwhile, the Senate move to restore the child tax credit to the working poor is being held hostage by those same House Republicans, who say they won't approve it unless it's part of yet another round of tax cuts for the rich.

Giving rich people who live off dividends and capital gains lower tax rates than many working people, under the rubric of economic stimulus, is hypocritical. Denial of a measly $400-per-child tax credit to the working poor is just mean.