TAX NEWS - June 2010

Iowa Tax: Des Moines law enforcement back child tax credit to cut crime

Chief, sheriff, county attorney say Congress should boost child tax credit to cut child poverty, crime; Research shows one in seven Iowa children lives in poverty

DES MOINES (June 10, 2010)—Des Moines area law enforcement leaders called Thursday for the expansion of federal child tax credits for working families struggling in today's recession as an effective way to prevent future crime. At a news conference, Des Moines Chief of Police Judy Bradshaw, Polk County Sheriff Bill McCarthy and County Attorney John Sarcone called on Iowa Senator Chuck Grassley to help reduce crime by supporting an expanded child tax credit for low-income, working families.

Most kids who grow up poor never become criminals, but a new research brief from the anti-crime group Fight Crime: Invest in Kids shows that the risk of becoming a violent offender is two and a half times higher for low-income kids than for the rest of children.

Research published in the Journal of the American Medical Association indicates that when parents' incomes are increased above the poverty level, children in those families exhibit significantly fewer behavioral problems and, as a result, are less likely to turn to a life of crime. Allowing more lower-income families to keep more of their earned income would help more families make ends meet, lift more children out of poverty and decrease the likelihood that the children will commit crimes as adults.

Grassley is the ranking Republican on the Senate Finance Committee, which has authority over taxation issues. The law enforcement officials asked Senator Grassley to reduce the earnings requirement for the child tax credit, which was expanded through the 2009 Recovery Act, down to the first dollar of earned income. This would make it possible for more low-income working families to receive the child tax credit. They also urged Grassley to, at a minimum, extend the current level of eligibility for the Child Tax Credit. Carroll County Attorney John Werden and Black Hawk County Attorney Thomas Ferguson also traveled to Washington, D.C. yesterday to discuss the child tax credit issue with Senator Grassley.

American children are more likely to be living in poverty than any other age group. In Iowa, approximately one in seven children was growing up in poverty in 2008, and the recession is only making things worse. As a result of the recession, many parents are now unemployed or underemployed, or have lost significant portions of their income or savings. Iowa's unemployment rate has spiked over the last year and a half; between October 2008 and April 2010, Iowa's unemployment rate has climbed from 4.8 percent to almost 7 percent.

"There's no substitute for tough law enforcement and no excuse for breaking the law. However, the research does show that reducing child poverty can make a significant impact in preventing crime," Chief Bradshaw said. "That's why we're asking Senator Grassley to join us in support of an expanded child tax credit to help families keep more of what they earn and make our communities safer in years to come."

The current child tax credit, as enhanced by the recovery package, provides help to 156,000 Iowa children in low-income families. They stand to lose these benefits if Congress takes no legislative action. Currently families only get the refundable tax credit, which is 15 percent of earned income up to a maximum of $1,000 per child, once they have earned at least $3,000. If Congress does not act, the threshold will increase from $3,000 back to the previous amount of $12,850, excluding even more poor, working parents from receiving the tax credit.

"We're concerned that the financial effects of the recession could put our communities at greater risk of crime in the future. Research shows that the risk of becoming a violent offender is two and a half times higher for low-income kids than for the rest of our children. An expanded child tax credit will benefit struggling families right away and make sure today's recession doesn't lead to a new generation of criminals down the road," Sheriff McCarthy said.

"I would much rather give tax breaks to working families than pick up the tab for career criminals ten or twenty years from now," County Attorney Sarcone said. "We need the child tax credit in place to help make sure that today's kids get a better start and that our communities are safe in the future."

Chief Bradshaw, Sheriff McCarthy and County Attorney Sarcone are members of Fight Crime: Invest in Kids, a national anti-crime organization of police chiefs, sheriffs, prosecutors and violence survivors with 160 members in Iowa and over 5,000 members nationwide.