Washington, D.C.— Today Iowa Congressman Steve King voted in favor of the Child Credit Preservation and Expansion Act of 2004, a plan to prevent a tax hike on millions of American parents. 

“Children in Iowa are getting ready to enjoy their summer break—a great time for a nature hike, but certainly not a tax hike,” said King.  “The last thing American families need is to have to spend an extra $300 for their taxes, rather than their family vacations.”

Today, the House passed a plan that will prevent millions of parents from having to pay more at tax time.  Without action by Congress, the child tax credit will drop from $1,000 to $700 next year, unfairly penalizing parents for having children.  The House plan will prevent an average tax hike of $610 on 30 million taxpayers with 49 million children.

Middle- and low-income families are protected from tax hikes by the House plan.  Under current law, the child credit is refundable up to 10 percent of earned income in excess of $10,750.  The plan raises the 10 percent rate to 15 percent this year – a year earlier than scheduled under current law.  Military families will also benefit, as they will now be allowed to include combat pay when calculating the refundable child credit.

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