[20010330]RS20847_儿童税收抵免和总统减税计划.pdf

Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code RS20847Updated March 30, 2001The Child Tax Credit and the Presidents Tax Cut PlanGregg A. EsenweinSpecialist in Public FinanceGovernment and Finance DivisionSummaryThe child tax credit was enacted as part of the Taxpayer Relief Act of 1997. Thecurrent credit is $500 per qualifying child. President Bush has proposed increasing thechild tax credit to $1,000 per qualifying child. The President has also proposed makingpermanent the temporary rule in current law that allows the child tax credit to offset ataxpayers alternative minimum tax. Economic theory does not provide a definitive answer to the question of how thecosts of child rearing should be accounted for under an income tax. The empiricalevidence suggests, however, that over the past 15 years the average federal tax rate onfamilies in the low- and middle-income ranges has fallen and has remained relativelyconstant for upper-income families. Current LawThe child tax credit was enacted as part of the Taxpayer Relief Act of 1997.Congress passed the bill because it believed that the tax structure did not adequately re