ALEXANDRIA, VA – Today, Congressman Charles B. Rangel (D-NY), Chairman of the House Ways and Means Committee, proposed a comprehensive, $1.3 trillion overhaul of the federal tax code. Although the vast majority of the bill’s provisions are targeted towards middle-class adults and corporations, there are several proposals that affect children and low-income families.

“A fairer, more equitable tax system is an important goal for all Americans. It is especially important for America’s children and families,” said Bruce Lesley, President of First Focus, a bipartisan advocacy organization committed to making children and their families a priority in federal policy and budget decisions. “As the debate over Chairman Rangel’s proposal begins, we need to make our kids a major priority in the discussion, and be sure to invest in our nation’s future. Improving the Child Tax Credit is a good first step, and we look forward to working with the Chairman to invest further in our nation’s children.”

Proposals in the measure affecting children include:

  • Changes to the Child Tax Credit. The child tax credit would be restructured to declare an additional 2.5 million children in low-income families eligible for the credit. Another 10 million more families would get an even bigger credit than they are receiving under the existing law. These changes will result in an additional $9.1 billion for children and families over the next ten years. The credit’s current structure leaves many low-income families ineligible for the credit, with many more receiving only a portion of the total available.
  • Increase in the standard deduction. The proposal also includes an increase in the standard deduction, a proposal benefiting taxpayers with children as well as those without. If enacted, it would result in a tax reduction of about $48 billion over 10 years, only some of which would go to families with children.
  • Changes to the Earned Income Tax Credit (EITC). Congressman Rangel’s proposed reform also includes a change to the EITC, which will result in an additional $29 billion flowing to low-income, working people. Unfortunately, all of it goes to childless adults. Moreover, the legislation continues to allow the EITC to not distinguish between a family with two children and the very different circumstances of a family with three, four, or more children. A comprehensive tax reform package should address this glaring disparity.