DeLay Goes for Bigger Tax Cut for Rich

By: Mary Dalrymple

House Republican leaders ignored White House pressure for quick passage of a Senate bill to expand child tax credits for low-income families and scheduled a vote on a package that also would give bigger tax cuts to high-income couples and members of the armed forces.

Majority Leader Tom DeLay of Texas said Tuesday the House will use the Senate's bill, which would send rebate checks of up to $400 per child to 6.5 million low-income families this summer, as a vehicle for language to make tax cuts President Bush signed last month less temporary.

"If they want the child tax credit, they ought to be able to have it in a package that actually creates jobs and helps the economy grow", said DeLay. He said the expanded Senate bill will come before the House on Thursday. After passage, it would have to return to the Senate.

DeLay's spokesman said House Republican leaders are not ignoring the President but are following his instructions by acting quickly to pass a bill that expands the child credit for low-income families.

Asked about DeLay's comments, the White House stuck to its position that President Bush wants to see the child tax credit passed without other cuts attached.

"The President thinks it's a good idea to pass the legislation", said spokeswoman Claire Buchan.

The House vote will be on an $82 billion package that, like the Senate's, expands the child tax credit for low-income families. Low-wage workers who make between $10,500 and $27,000 could claim a refund worth 15% of their income over $10,500.

House Republicans want to extend the full benefit also to married couples who make up to $150,000. The benefit currently starts to disappear for couples that make $110,000 or more.

The House also would keep the child tax credit at $1,000 through 2010. Under both the Senate bill and the tax cut Bush signed last month, the credit would fall to $700 in 2006. In addition, the House Republicans want to wrap in some new tax breaks for military personnel.