TAX NEWS - June 2010

Officials ask for child tax credit aid

Three of Polk County's top law enforcement officials called Thursday for more help for struggling working families through federal tax credits for parents.

Polk County Attorney John Sarcone, Sheriff Bill McCarthy and Des Moines Police Chief Judy Bradshaw are asking Iowa Sen. Chuck Grassley, ranking Republican on the Senate Finance Committee, to support expanding the child tax credit for low-income, working families as a way to fight crime.

The organization Fight Crime: Invest in Kids says the risk of becoming a violent offender is 2½ times higher for low-income children.

"One of the things that we are aware of through our experience is that in order to support our youth and our younger generations, we first need to support our families," Bradshaw said. "Because you cannot support children without supporting the entire family."

The three law enforcement officials, all members of Fight Crime: Invest in Kids, are asking Grassley to help reduce earnings requirements for the child tax credit, which provides tax credits to parents based on the number of children they have and their income.

At a minimum, the three asked that the level of eligibility be extended for the child tax credit. It currently provides help to 156,000 Iowa children in low-income families, the organization said.

Families currently receive a tax credit of 15 percent of earned income up to a maximum of $1,000 per child once they have earned $3,000. If Congress does not act, the threshold will increase from $3,000 to the previous level of $12,850, officials said.

"Specifically, what we'd like (Grassley) and the Congress to do is to make sure the tax credit is renewed in 2010, and if possible make sure that low-income, working families get it from the first dollar earned — not wait until that $3,000 level," Sarcone said.

Sarcone said that change would go a long way to help families.

"From my perspective, I'd much rather give tax breaks to working families than pick up the tab for career criminals 20 years down the road," he said.

Grassley issued a statement later Thursday.

"As an early advocate for the child tax credit that was passed by a Republican-controlled Congress, and a supporter of its expansion, I hope the majority party will give the Senate a chance to consider this and other significant tax benefits set to expire at the end of the year," he said.

McCarthy spoke about a conversation he had while at a forum talking about disadvantaged social-economic conditions and the role it plays in crime.

"Some fellow spoke up and said he had to walk to school five miles barefoot and he was not a criminal," the sheriff said. "We're not saying that.

"But we are saying the difficulties that come along with that bottom rung in our social structure create hardships and disadvantages for kids, and it is reflected in crime later on in life."