TAX NEWS - June 2010

Top cops back expansion of child tax credits

Law enforcement leaders in Polk County on Thursday called for more help for struggling working families through federal child tax credits.

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 child tax credit for low-income working families.

The organization Fight Crime: Invest in Kids says the risk of becoming a violent offender is two and a  half times higher for low-income kids than other 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 is we first need to support our families," said Bradshaw. "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. At a minimum, they ask that the current 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 get 15 percent of earned income up to a maximum of $1,000 per child once they have reached $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 him (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," said Sarcone. "We realize that's a request that changes the law but certainly that would go a long way to help our families."

The county attorney said, "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."

Grassley issued a statement later on Thursday, saying, "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. It's unfortunate that they have placed so little emphasis on important provisions like the child tax credit."

Sheriff McCarthy told the gathering he was at a recent forum to discuss disadvantaged social-economic conditions and the role it plays in crime. "And 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."