Still No Extension of Child Tax Credit for Low-Income Families

As 25 million families begin receiving their checks from the IRS for the $400 per child increases in the child tax credit, House Democrats used a series of procedural floor votes on July 23 to bring attention to the fact that no progress has been made to extend the credit to low-income families.

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OMB Watch Comments on EITC "Pre-Certification"

The IRS is planning a "pilot" project to require "pre-certification" of EITC recipients beginning in August 2003. The project is targeted at filers who claim children who are not their own. Comments on the form that requires documentation or affidavits proving residency of children with the claiming tax filer for six months of the tax year were due July 14. Comments on the overall process are can be made through December 31, 2003. See the IRS announcement for more information.

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Comments on IRS Pre-Certification of EITC Recipients

The Internal Revenue Service is planning a "pilot" project beginning in August to require "pre-certification" of 45,000 Earned Income Tax Credit recipients. This effort is targeted to filers who are claiming children of whom they are not the parents. OMB Watch commented on the process and the form, which requires documentation or an affidavit to show that the children and caretakers have lived in the same household for six months of the taxpaying year. Comments on the form were due on July 14, 2003, but comments about the process may be submitted through December 31, 2003. See the IRS announcement for more details.

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From the Tax Policy Center

Here's the latest from the Urban-Brookings Tax Policy Center:

TAX EVASION, IRS PRIORITIES, AND THE EITC Leonard E. Burman Testimony to United States House of Representatives

THE AMT: PROJECTIONS AND PROBLEMS Leonard E. Burman, William G. Gale and Jeff Rohaly TAX NOTES, July 7, 2003

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Income Watch: The Rich are Getting Richer?and Getting Bigger Tax Breaks

Top 400 are doing well… The IRS has just released two reports on the status of the wealthiest Americans. The report on the incomes of the highest 400 income tax filers shows a dramatic rise in their income levels.

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Budget ZigZag

The “Jobs and Growth Tax Relief Reconciliation of 2003” bill (HR 2) that President Bush signed into law with much fanfare on May 28 is chock full of tax cuts that “sunset” – that is, they revert back to pre-2003 law. When combined with the previous Bush tax cut, “The Economic Growth and Tax Relief Reconciliation Act of 2001,” which is also full of tax cuts that slowly phase in and then end altogether, the result is like something out of Kafka. However, the difficulty for the IRS of creating forms and instructions to reflect yearly changes and taxpayer confusion are not the worst consequences of these bills.

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Corporate Tax Havens and the EITC

While the administration continues to push for tax cuts for corporations and the very wealthy, whose tax avoidance is estimated to cost the government $75 billion a year, it is also working to establish a rigorous pre-certification process for Earned Income Tax Credit (EITC) recipients.

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Poverty and Welfare Information

Analyses and statements by other organizations on welfare reform in general, the history of welfare reform, the 1996 welfare reform law, welfare reform in the states, as well as specific aspects including children, child care, food stamps, and job training

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Estate Tax Data & Terminology

Internal Revenue Service (IRS) and Congress’ Joint Committee on Taxation data and reports on the estate tax and OMB Watch explanations of key elements of the estate tax policy.

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