Congresswoman Gwen Moore Votes Against $80 Billion Tax Package, Citing Insufficient Aid for Poorest Families
Milwaukee Rep. Gwen Moore, a prominent figure in the fight for low-income children and families, recently made headlines when she voted against an $80 billion tax package. The tax package included provisions to expand the child tax credit, a cause that Moore has been advocating for. However, she argued that the measure falls short in addressing the needs of the poorest families who are in desperate need of assistance.
In an interview with the Milwaukee Journal Sentinel, Moore expressed her concerns about the proposed tax package. She stated, “The proposal is an improvement, slightly. But if it’s supposed to be a child subsidy – the full credit is not provided to the lowest, lowest, lowest, poorest of the poor children. It’s an upside-down incentive.”
Despite Moore’s opposition, the legislation passed the chamber with a 357-70 vote and is now awaiting approval in the Senate. President Joe Biden has indicated his intention to sign the bill into law.
Moore’s decision to vote against the tax package is significant considering her longstanding commitment to addressing child support issues. She has been an advocate for low-income families since she first arrived on Capitol Hill nearly 20 years ago. In a speech on the House floor before the vote, Moore emphasized that while the measure is better than current law, it still falls short of being a sufficient compromise. She stated, “I think we need to compromise, but we don’t need to capitulate. We’re going to expand this tax for poor children, but the poorest will be even poorer.”
The tax package, negotiated by Missouri Republican Rep. Jason Smith and Oregon Democratic Sen. Ron Wyden, aims to expand the child tax credit over the next three years for millions of children living in poverty. However, it does not reach the level of expansion achieved through the American Rescue Plan Act in 2021.
The package also includes tax credits for businesses, such as those for domestic research and development. These corporate tax credits were proposed under the Trump administration in 2017. To offset the cost of these breaks, the bill curbs a pandemic-era employee retention tax credit that encouraged companies to retain their workers.
One of the specific provisions of the tax package seeks to make the child tax credit more accessible for families with multiple children. It also raises the refundable portion of the credit for low-income families from the current rate of $1,600 per child to $1,800 per child. Over the next few years, this rate will increase to $1,900 and eventually $2,000. The credit will also be adjusted for inflation.
According to the Center on Budget and Policy Priorities, a nonprofit organization that studies tax policy, the expansion of the child tax credit could lift about 400,000 children out of poverty and benefit up to 16 million children from low-income families in its first year. In Wisconsin alone, approximately 224,000 children would become eligible for the program.
The issue of poverty is particularly significant in Milwaukee, which has one of the highest poverty rates among major cities in the country. U.S. Census data indicates that just under 24% of Milwaukeeans live in poverty, with more than a quarter of the city’s children being affected.
Despite the potential positive impact of the tax package, it has faced criticism from some Democrats who argue that it fails to adequately address the needs of the poorest families and falls short of the provisions included in the 2021 child tax credit expansion. On the other hand, some Republicans have criticized the push for de-incentivizing work.
One of Moore’s main concerns is the inclusion of work requirements in order to qualify for the child tax credit. She argues that these requirements place an unfair burden on low-income parents, particularly single mothers. Moore stated, “I think we need to stop tying the CTC to work requirements, but if we need to keep some for the sake of compromise, then we need to think about what the real-world impact looks like and recognize the many demands on parents.”
Wisconsin’s delegation was divided on the tax package. Democratic Rep. Mark Pocan and Republican Rep. Tom Tiffany joined Moore in opposing the legislation. Tiffany referred to the measure as a “massive expansion of Washington’s welfare state” and claimed that “illegal immigrants would be eligible to cash in” on the child tax credit. However, Republican Rep. Glenn Grothman voted in favor of the measure, highlighting its benefits for manufacturing and middle-class families.
While Moore acknowledges the positive aspects of the tax package, such as increased support for families with multiple children and the use of prior year’s income for calculating tax credits, she ultimately believes that these changes do not go far enough.
As the tax package moves forward in Congress, the debate over its effectiveness in addressing the needs of low-income families continues. While it represents progress in expanding the child tax credit, there are concerns that it may not fully reach the poorest families who are most in need of assistance. The final outcome of this legislation will have a significant impact on millions of children living in poverty across the country.