Wednesday, July 23, 2003

Deal Offered on Child Tax Credit Senate Republicans offered a compromise to the House today intended to end the stalemate blocking an expansion of the child tax credit to low-income families, but Democrats said the proposal's benefits for wealthier families were too expensive to pass. The offer came with an increase in political activity just four days before the government will begin mailing $400-per-child checks to 25 million middle-income families eligible to receive the tax credit. On Thursday, President Bush is scheduled to visit a federal office in Philadelphia that is printing the checks, using the opportunity to remind voters that the checks are to stimulate the economy. Democrats plan a series of protests on and off the floors of Congress this week to demonstrate their anger that 6.5 million low-income families were left out of the economic stimulus package and will not be receiving the checks. Representative Nancy Pelosi of California, the Democratic leader, said members of her party would make this "the week from hell" for Republicans. On Wednesday, as part of one protest, 700 children are scheduled to descend on the Capitol to make a similar point. Today's compromise proposal, made by the three Republican senators who are negotiating with the House on the credits, would give the $400-per-child credits to the 6.5 million minimum-wage families, a provision that would cost $3.5 billion. But the plan would also spend $20 billion to give increased credits to 25 million middle- and upper-income families from 2005 to 2007. The increase, to $1,000 from $600, is now scheduled to expire in 2005. http://www.nytimes.com/2003/07/23/national/23TAX.html