WASHINGTON – The White House this afternoon almost immediately dismissed a plan by Sens. Marco Rubio and Mike Lee to increase the child tax credit by giving corporations less of a cut.
"We do support the child tax credit. We also think it's important to make businesses more competitive. We would not support raising the corporate rate as outlined in that amendment," spokesman Raj Shah told reporters.
The current proposed corporate tax rate is 20 percent; Rubio and Lee want it at 22 percent and say that would pay for a more generous child tax credit that helps more low-income families.
As it stands now, the Senate bill doubles the credit to $2,000 but it is not fully refundable. Lower income families will get little relief, while wealthier ones will get a decent bump.
"We have a chance to do better by working families in this tax bill," Rubio and Lee said. "Right now, 70 percent of the tax cuts we're considering would go to businesses, and only 30 percent to individuals. This amendment would level the playing field for families, while still kick-starting national investment and growth. By increasing access to the Child Tax Credit, we can increase working family fairness and deliver overdue relief to America's greatest investor class: our moms and dads."
Specifically the Rubio-Lee amendment would:
– Make the Child Tax Credit refundable up to payroll tax liability (15.3 percent of earnings);
– Fix the marriage penalty by reducing the income phaseout threshold for the Child Tax Credit to $250,000 for all non-married filing jointly filers;
– Index the Child Tax Credit to chained CPI in accordance with other individual-side provisions; and
– Increase the corporate income tax rate to 22 percent, to fully pay for the above changes.