U.S. HOUSE Child tax credit on agenda

The House is voting on bills to preserve tax cuts that are due to expire.
WASHINGTON (AP) -- Having voted in favor of keeping tax cuts that show up in virtually every worker's paycheck, the House turns next to the child tax credit.
That credit is due to drop from $1,000 to $700 next year unless lawmakers act. Legislation dealing with the child tax credit would be the last in a series of bills preventing several popular tax cuts from expiring at the end of the year.
The bills aimed at preserving expiring tax cuts have moved easily through the House, and gained support from some Democrats, although many of them have voiced concerns about worsening budget deficits.
The House voted 344-76 Thursday to pass the tax bracket bill, which makes permanent the bottom bracket created in 2001, when the tax on the first $6,000 in earned wages was lowered from 15 percent to 10 percent. In 2003, Congress expanded the bracket to cover the first $7,000 earned.
Under current law, the bracket shrinks back to $6,000 next year and disappears entirely in 2011. Republicans said 73 million taxpayers can expect to pay higher taxes next year if the law isn't extended.
"Preventing a tax increase is essential for taxpayers at all income levels, especially those in the lower 10 percent bracket," said Treasury Secretary John Snow.
What's been passed
The House already has voted to preserve tax cuts for married couples and acted to ensure the alternative minimum tax doesn't claw back the tax cuts.
The alternative minimum tax, imposed to prevent wealthy families from dodging income taxes, reaches further into the middle class each year.
The Senate plans to pass one bill extending the expiring tax credits later this year.
The last in the series of House bills securing President Bush's tax cuts would prevent the $1,000 child tax credit from dropping down to $700 next year.
Other changes would make the credit available to more upper-income and more lower-income families.
One adjustment increases the amount of money taxpayers can make before the credit starts to disappear to $125,000 for individuals and $250,000 for married couples. Currently, the credit starts to shrink for single individuals who earn $75,000 or more and married couples who earn $110,000 or more.