Sending Office: Honorable Linda T. Sanchez
Sent By:
Juan.Rangel@mail.house.gov

        Request for Signature(s)

Dear Colleagues,

Please consider signing onto my letter that opposes President Trump’s proposal to greatly reduce access to the Child Tax Credit. This proposal would hurt low to moderate-income immigrant families as well as millions of U.S. citizen children. This language
should not be included in any final funding package.

Please contact Juan Rangel (juan.rangel@mail.house.gov) in my office if you wish to sign on. Deadline is Tuesday, October 24, 2017.

Sincerely,

Linda T. Sánchez

Member of Congress

 

Letter Text

 

October XX, 2017

 

The Honorable Paul Ryan

Speaker

United States House of Representatives

Washington, D.C. 20515

 

The Honorable Nancy Pelosi

Democratic Leader

United States House of Representatives

Washington, D.C. 20515

 

Dear Speaker Ryan and Leader Pelosi:

 

With the imminent need to address federal government funding, we write to share our strong opposition to President Trump’s proposal to greatly reduce access to the Child Tax Credit (CTC). The Administration’s plan increases the federal tax burden for millions
of low to moderate income immigrant families and we do not support inclusion of this language in any final funding package presented to Congress for a vote. One of the worst consequences of this proposal is that it would directly harm millions of U.S. citizen
children. 

 

The CTC is a critical tool that helps working families escape poverty and achieve greater self-sufficiency. The CTC lifted 2.8 million people out of poverty in 2015, including 1.6 million children.[1]
This proposal would affect 4.4 million low-income immigrant workers and tax-filers who paid more than $5.5 billion payroll and Medicare taxes in 2015.[2] Families affected by this change have
earned income and pay taxes, but on average they earn just over $21,000 each year.[3] Given their tight budgets, families who benefit from the CTC immediately spend the money they receive
on essentials like child care, housing, groceries, and other basic necessities. These families are using their refund to support basic needs. The money, in turn, aids local economies where these families live and work. Denying access to the CTC not only harms
the families and children that rely upon these funds, but also local small businesses and their employees. The CTC, along with the Earned Income Tax Credit (EITC), are crucial mechanisms to alleviate poverty in our communities.

 

U.S. citizen children, who represent 80 percent of the more than 5 million children who would be impacted, would suffer the most from this ill-advised idea.[4] As a family’s income has a
demonstrable effect on a child’s future economic outlook, this proposal jeopardizes the prospects of America’s future generation. Research shows that the CTC helps children in working families at virtually every stage of their lives. Children whose families
receive an income boost from tax credits on average do better in school, are more likely to go to college, more likely to work and earn more as adults, and experience better health outcomes.[5]
For these reasons, we urge Congress to protect America’s next generation and reject any reductions in the CTC.

 

Sincerely,

 

Linda T. Sánchez

Member of Congress

 


[1] Center on Budget and Policy Priorities, “Policy Basics: The Child Tax Credit,” October 2016, http://www.cbpp.org/research/federal-tax/policy-basics-the-child-tax-credit

[2] National Taxpayer Advocate, “2015 Annual Taxpayer Report to Congress.” Volume I,  p. 199.  http://taxpayeradvocate.irs.gov/Media/Default/Documents/2015ARC/ARC15_Volume1_MSP_18_ITIN.pdf

[3] Treasury Inspector General for Tax Administration, “Individuals Who Are Not Authorized to Work in the United States Were Paid $4.2 Billion in Refundable Credits,” July 2011, https://www.treasury.gov/tigta/auditreports/2011reports/201141061fr.pdf.
In 2010, the average ACTC refund amount for ITIN taxpayers was $1,800, and their average household wages were $21, 240. 7.8%= $1,800/(1,800+21,240)

[4]  Randy Capps, Michael Fix, and Jie Zong, “A Profile of U.S. Children with Unauthorized Immigrant Parents,” Migration Policy Institute,” January 2016, http://www.migrationpolicy.org/research/profile-us-children-unauthorized-immigrant-parents.

[5] Chuck Marr, Chye-Ching Huang, Arloc Sherman, and Brandon Debot, “EITC and Child Tax Credit Promote Work, Reduce Poverty, and Support Children’s Development, Research Finds,” Center on
Budget and Policy Priorities, October 2015, http://www.cbpp.org/research/federal-tax/eitc-and-child-tax-credit-promote-work-reduce-poverty-and-support-childrens.

 

Related Legislative Issues

Selected legislative information:Immigration, Taxes

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