On the recordJanuary 31, 2024
The Wall Street Journal editorial last week said about this bill: ``Up to $1,600 of the $2,000 credit is refundable, and the bipartisan bill would make $2,000 refundable by 2025.'' Now, in fairness, ``A $1,400 limit was tethered to inflation under the 2017 GOP tax law and is thus increasing over time anyway.'' The general point here is: ``But at least admit this is income redistribution, not `tax relief'. . . . '' It is income redistribution. ``Worse, the deal undermines the incentive to work in return for the credit. The current credit at least requires a small amount of income-- a mere $2,500--to begin to claim it. That means it gives low-income Americans an incentive to work more to earn more, which is good for them and their children.'' However, this would allow parents to ``rely on the prior year's income to trigger the credit for 2024 and 2025. Work one year--and earn benefits for two. The practical effect is to `cut the work requirement in half,' '' according to a report by the American Enterprise Institute. The fact is the editorial closes: ``The business lobby wants the tax breaks.'' By the way, this is The Wall Street Journal editorial. ``The business lobby wants the tax breaks, and some Democrats in Congress want them as well. But those policies ought to stand or fall on their merits, not on a political trade that will do more harm than good.'' Mr. Speaker, I reserve the balance of my time.
