H.R. 8 Leaves No Millionaire Behind but Ends Tax Cuts for a Third of Families with Children

H.R. 8, introduced by Rep. Dave Camp (R-MI) would extend the Bush-era income tax cuts for the richest two percent of Americans (those with income above $250,000 for a couple, $200,000 for an individual) and extend the 2010 estate tax cuts for the richest 0.3 percent (estates over $7 million per couple).  At the same time, H.R. 8 would end tax cuts for low- and moderate income families enacted as part of the American Recovery and Reinvestment Act of 2009.

Under H.R. 8, no millionaire would lose a penny of tax cuts[1] - worth an average of $160,000 next year.[2]

BUT:

Over one-third (37 percent) of all families with children and nearly three-quarters (74 percent) of low-income families with children would lose tax benefits next year.^[3]

25 million middle- and lower-income families would lose tax benefits, including:

• 12 million who would lose the expansion of the Child Tax Credit, an average of $800 per family. A single mom with two children who works full-time at minimum wage and makes $14,500 per year would lose $1,545 next year because H.R. 8 ends the improvements in the Child Tax Credit.
• 11 million who would lose the American Opportunity Tax Credit for college expenses,an average of $1,100 per family.
• 6 million who would lose improvements in the Earned Income Tax Credit (expanded marriage penalty relief and the increase for families with three or more children), an average of $500 per family.[4]