The Senate did its part to right a wrong when it added the working poor to a tax break already granted to American families with higher incomes. Now, the only thing standing in the way of this corrective legislation that would help 12-million low-income children is the House and its Republican leader, Tom DeLay.
A $350-billion tax cut passed by Congress last month included an additional $400-per-child tax credit for millions of families making up to $110,000. At the last minute, however, Republican negotiators excluded those with incomes between $10,500 and $26,625.
Bolstered by many Americans' outrage at the slight, Senate Democrats demanded that the tax break be made fair. Their Republican colleagues grudgingly agreed, but insisted on extending the credit to wealthier families - those making up to $150,000. Under the Senate proposal, the new guidelines would not cost more, because the tax credits would be offset with a fee increase at the U.S. Customs Service. That is an important point, because tax cuts this year have already reached the Senate ceiling of $350-billion.
Even the White House is receptive to the Senate's proposal, but not DeLay.
"There are a lot of other things that are more important" than extending the tax credit to the poor, DeLay said. "To me, it is difficult to give tax relief to people that don't pay income tax."
Workers in those families are docked for payroll taxes at the same rate as every other wage earner, which represents a higher percent of their pay.
DeLay has said he would consider the Senate proposal only if it is part of a larger tax package, including a permanent repeal of the estate tax. He knows the Senate won't buy that.
For DeLay, no tax cut is irresponsible - unless it is for the less fortunate.
