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.

We had the privilege of going to the White House this week to hear President Obama deliver remarks on the economy and taxes. There were lots of pretty cool parts (including a peek at the portraits of the First Ladies!), but the real highlight was the President’s speech exhorting Congress to end the Bush-era tax cuts for the richest two percent. Here’s why we think that is such a great idea:

• We can’t afford to continue tax breaks for the households who need them the least. That will cost about $1 trillion over the next ten years.
• Ending the tax cuts on income above $250,000 means that 98 percent of Americans won’t see their taxes go up.  
• Giving lavish tax cuts to the wealthiest Americans didn’t lead to strong job growth or shared prosperity, but it did increase the deficit – a lot.

We have a few thoughts on better ways to spend $1 trillion than on more tax breaks for the wealthy.