By Katherine Gallagher Robbins, Senior Policy Analyst

I’m at that time in life when lots of my friends are having kids. I’m thrilled for my friends - their kids are awesome and adorable. But one thing they’re not is cheap. And if Republicans have their way, kids are about to get even more expensive.

New analysis by the Tax Policy Center shows that the tax bill (H.R.8) introduced by Rep. Dave Camp (R-MI) (a bill virtually identical to S. 3414 which was introduced by Senate Republican leaders and rejected by a majority of the Senate last week) ends tax cuts for millions of hard-working families. In fact, more than one-third of all families with children and nearly three-quarters of low-income families with children (who make an average of $17,400 a year) would lose valuable tax benefits under Rep. Camp’s bill. The loss would be particularly hard for women who are the majority of low-income parents.

Wonder why so many families will lose out under Rep. Camp’s tax bill? It, like the bill introduced by Senate Republican leaders, would end tax cuts for low- and moderate-income families that were put into place by the American Reinvestment and Recovery Act of 2009. The National Economic Council estimates that by letting these tax cuts expire:

• 12 million families would lose an average of $800 from the elimination of the Child Tax Credit expansion.
• 11 million families would lose an average of $1,100 from the repeal of the American Opportunity Tax Credit for college expenses.
• 6 million families would lose an average of $500 from the elimination of improvements to the Earned Income Tax Credit.

But guess who won’t lose any of the tax breaks they’ve become accustomed to?

If you guessed millionaires, you’d be right. The analysis by the Tax Policy Center also shows that they won’t lose a penny of their tax cuts next year, which should be worth about $160,000. That’s because Rep. Camp’s bill very generously extends Bush-era income tax cuts that only benefit the richest two percent of Americans and the 2010 estate tax cuts for the richest 0.3 percent (estates over $7 million per couple).

The House is scheduled to vote on Rep. Camp’s tax bill this week. They’ll also have an opportunity to vote for an alternative: H.R. 15, introduced by House Democratic leaders, would end tax cuts that only benefit the richest two percent while extending the Bush-era tax cuts on income up to $250,000 ($200,000 for a single taxpayer) and the Recovery Act tax cuts for working families.

So, for my friends who have kids – or soon will – I’m going to do two things. First, I’m going to call my Representative at 1-888-744-9958 to say what I think about extending tax cuts for the richest two percent and leaving millions of moms and kids behind.

And, for my next baby shower, instead of a great zebra onesie, maybe I’ll just bring some cash…my friends just might need it!

PS – Want more info on H.R. 8? Check out our new fact sheet.

 

This blog was cross-posted from NWLC's blog, Womenstake.