By Sutherland Staff
Published on August 1, 2017

SALT LAKE CITY — Today Sutherland Institute released a new analysis showing the Lee-Rubio expansion of the child tax credit would significantly benefit Utahns, as well as lower-to-middle-income and rural Americans. This credit, which is part of ongoing tax reform efforts, is found in the Economic Growth and Family Fairness Tax Plan. It has the Trump administration’s support.

Senators Mike Lee (R-Utah) and Marco Rubio (R-Fla.), after learning the results of Sutherland’s analysis, offered the following statements.

Senator Mike Lee:

“Providing relief for working families – especially relief from the parent tax penalty – is essential for 21st century reform,” Lee said. “The Sutherland Institute’s detailed new analysis shows that an expanded child tax credit is one surefire way we can help them.”

Senator Marco Rubio:

“Tax reform should be grounded in the daily realities of family life: household budgets, food on the table, and equipment for kids’ sports teams,” Rubio said. “As the Sutherland Institute’s research shows, expanding the child tax credit would provide meaningful tax relief to working families across America.”

Sutherland Institute Executive Director Derek Monson:

“The Lee-Rubio expansion of the child tax credit both strengthens families and encourages economic equality,” said Monson, author of the new analysis. “It does the former by offering tax relief to families that strengthens their financial position. It does the latter by returning a proportionally larger amount of income to lower-income and middle-income families than to upper-income families.”

Under the Lee-Rubio approach, families with children would be able to claim a $2,500 tax credit in addition to the current $1,000 child tax credit. The expanded child tax credit would be refundable up to each taxpayer’s combined federal income and payroll tax liability, and it would be counted only after all other tax credits were factored in. The regions that have the most dependents per tax return include Utah, the Sun Belt, and parts of Idaho, Oregon and Washington.

New analysis of public IRS data (also found in the attachment) suggests that the Lee-Rubio expanded child tax credit would benefit families in Utah, the Sun Belt, and lower-to-middle-income and rural American counties. In short, as tax policy, it seems to be targeted tax relief for the “forgotten Americans” that put the Donald Trump administration in the White House in 2016.

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