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[House Report 113-527]
[From the U.S. Government Publishing Office]

113th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     113-527

======================================================================

 
                CHILD TAX CREDIT IMPROVEMENT ACT OF 2014

                                _______
                                

 July 17, 2014.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Camp, from the Committee on Ways and Means, submitted the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 4935]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 4935) to amend the Internal Revenue Code of 1986 to 
make improvements to the child tax credit, having considered 
the same, report favorably thereon with an amendment and 
recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
  I. SUMMARY AND BACKGROUND...........................................2
          A. Purpose and Summary.................................     2
          B. Background and Need for Legislation.................     2
          C. Legislative History.................................     3
 II. EXPLANATION OF THE BILL..........................................3
          A. Modification of Child Tax Credit (sec. 24 of the 
              Code)..............................................     3
III. VOTES OF THE COMMITTEE...........................................4
 IV. BUDGET EFFECTS OF THE BILL.......................................5
          A. Committee Estimate of Budgetary Effects.............     5
          B. Statement Regarding New Budget Authority and Tax 
              Expenditures Budget Authority......................     7
          C. Cost Estimate Prepared by the Congressional Budget 
              Office.............................................     7
          D. Macroeconomic Impact Analysis.......................    10
  V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE......10
          A. Committee Oversight Findings and Recommendations....    10
          B. Statement of General Performance Goals and 
              Objectives.........................................    10
          C. Information Relating to Unfunded Mandates...........    10
          D. Applicability of House Rule XXI 5(b)................    10
          E. Tax Complexity Analysis.............................    10
          F. Congressional Earmarks, Limited Tax Benefits, and 
              Limited Tariff Benefits............................    14
          G. Duplication of Federal Programs.....................    14
          H. Disclosure of Directed Rule Makings.................    14
 VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED...........14
VII. DISSENTING VIEWS................................................16
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Child Tax Credit Improvement Act of 
2014''.

SEC. 2. IMPROVEMENTS TO CHILD TAX CREDIT.

  (a) Elimination of Marriage Penalty.--Section 24(b)(2) of the 
Internal Revenue Code of 1986 is amended by striking ``means--'' and 
all that follows and inserting ``means $75,000 (twice such amount in 
the case of a joint return).''.
  (b) Inflation Adjustment of Credit Amount and Phaseout Thresholds.--
Section 24 of such Code is amended by adding at the end the following 
new subsection:
  ``(g) Inflation Adjustment.--
          ``(1) In general.--In the case of any taxable year beginning 
        after 2014, the $1,000 amount in subsection (a) and the $75,000 
        amount in subsection (b)(2) shall each be increased by an 
        amount equal to--
                  ``(A) such dollar amount, multiplied by
                  ``(B) the cost-of-living adjustment determined under 
                section 1(f)(3) for the calendar year in which the 
                taxable year begins, determined by substituting 
                `calendar year 2013' for `calendar year 1992' in 
                subparagraph (B) thereof.
          ``(2) Rounding.--Any increase determined under paragraph (1) 
        shall be rounded--
                  ``(A) in the case of the $1,000 amount in subsection 
                (a), to the nearest multiple of $50, and
                  ``(B) in the case of the $75,000 amount in subsection 
                (b)(2), to the nearest multiple of $1,000.''.
  (c) Effective Date.--The amendments made by this section shall apply 
to taxable years beginning after December 31, 2014.

                       I. SUMMARY AND BACKGROUND

                         A. Purpose and Summary

    H.R. 4935, reported by the Committee on Ways and Means, 
provides for elimination of the marriage penalty within the 
child tax credit by raising the phaseout threshold for joint 
filers from $110,000 to $150,000. H.R. 4935 also indexes the 
phaseout thresholds and the $1,000 credit amount for inflation 
for taxable years beginning after December 31, 2014.

                 B. Background and Need for Legislation

    While the Committee continues actively to pursue 
comprehensive tax reform as a critical means of promoting 
economic growth, job creation, and tax simplification, the 
Committee also believes that it is important to act immediately 
to provide permanent tax relief for American families. By 
eliminating the marriage penalty in the child tax credit and 
indexing the $1,000 credit amount and income phase-outs for 
inflation, H.R. 4935 would treat married couples raising 
children more fairly, while also ensuring that the value of the 
child credit is not eroded by inflation.

                         C. Legislative History

Background

    H.R. 4935 was introduced on June 23, 2014, and was referred 
to the Committee on Ways and Means.

Committee action

    The Committee on Ways and Means marked up H.R. 4935, the 
``Child Tax Credit Improvement Act of 2014,'' on June 25, 2014, 
and ordered the bill, as amended, favorably reported (with a 
quorum being present).

Committee hearings

    The importance of, and need for improvements in, the child 
tax credit were discussed at no fewer than three hearings 
during the 112th and 113th Congresses:
     Full Committee hearing on How the Tax Code's 
Burdens on Individuals and Families Demonstrate the Need for 
Comprehensive Tax Reform (April 13, 2011).
     Oversight Subcommittee hearing on Improper 
Payments in the Administration of Refundable Tax Credits (May 
25, 2011).
     Full Committee hearing on the President's Fiscal 
Year 2015 Budget Proposal with the U.S. Department of the 
Treasury Secretary Jacob J. Lew (Mar. 6, 2014).

                      II. EXPLANATION OF THE BILL

       A. Modification of Child Tax Credit (sec. 24 of the Code)

                              PRESENT LAW

    An individual may claim a tax credit for each qualifying 
child under the age of 17.\1\ The amount of the credit per 
child is $1,000.\2\ A child who is not a citizen, national, or 
resident of the United States cannot be a qualifying child.
---------------------------------------------------------------------------
    \1\Sec. 24(c)(1). Unless otherwise stated, all section references 
are to the Internal Revenue Code of 1986, as amended (the ``Code'').
    \2\Sec. 24(a).
---------------------------------------------------------------------------
    The aggregate amount of child credits that may be claimed 
is phased out for individuals with modified adjusted gross 
income (``MAGI'') over a threshold amount. Specifically, the 
otherwise allowable child tax credit is reduced by $50 for each 
$1,000 (or fraction thereof) of MAGI over $75,000 for unmarried 
taxpayers, $110,000 for married individuals filing joint 
returns, and $55,000 for married individuals filing separate 
returns. For purposes of this limitation, MAGI includes certain 
otherwise excludable income earned by U.S. citizens or 
residents living abroad or in certain U.S. territories. These 
dollar amounts are not indexed for inflation.
    The credit is allowable against both the regular tax and 
the alternative minimum tax. To the extent the child credit 
exceeds the taxpayer's tax liability, the credit is refundable 
in an amount equal to 15 percent of the taxpayer's earned 
income in excess of a threshold dollar amount (the ``earned 
income'' formula).\3\ For taxable years beginning before 
January 1, 2018, the dollar amount is $3,000 (not indexed for 
inflation). For taxable years beginning after December 31, 
2017, the dollar amount is $10,000 (indexed for inflation after 
2000). The staff of the Joint Committee on Taxation estimates 
that the indexed $10,000 amount would be $13,600 in 2014.
---------------------------------------------------------------------------
    \3\Sec. 24(d). The refundable portion of the credit is referred to 
as the ``additional child tax credit.''
---------------------------------------------------------------------------
    A taxpayer with three or more children may determine the 
refundable portion of the child tax credit using an 
``alternative formula,'' if it results in a larger refundable 
credit than determined under the earned income formula. Under 
the alternative formula, the additional child tax credit equals 
the amount by which the employee share of the taxpayer's Social 
Security taxes exceed the taxpayer's earned income credit.\4\
---------------------------------------------------------------------------
    \4\Sec. 24(d)(1)(B)(ii).
---------------------------------------------------------------------------
    Earned income is defined as the sum of wages, salaries, 
tips, and other taxable employee compensation plus net self-
employment earnings which are taken into account in computing 
the individual's taxable income. Otherwise excludable combat 
pay is treated as earned income for these purposes.
    For a credit to be allowable with respect to any child, the 
name and taxpayer identification number of the child must be 
included on the taxpayer's tax return.\5\
---------------------------------------------------------------------------
    \5\Sec. 24(e).
---------------------------------------------------------------------------

                           REASONS FOR CHANGE

    The Committee believes that a tax credit for families with 
children recognizes the expense of raising children and the 
importance of helping families raise children. Accordingly, the 
Committee believes that indexing for inflation both the credit 
amount and the phaseout thresholds of the child tax credit is 
an important means of ensuring that the value of the credit is 
not diluted.
    Additionally, the Committee believes that, where possible, 
marriage penalties in the tax code should be eliminated. By 
increasing the phaseout threshold for married taxpayers who 
file joint returns to twice that of unmarried taxpayers, the 
bill eliminates marriage penalties with respect to the child 
credit.

                        EXPLANATION OF PROVISION

    The proposal modifies the child tax credit in three ways. 
First, the $1,000 credit amount is indexed for inflation to the 
nearest multiple of $50 in calendar years beginning after 2014. 
Second, the beginning of the child credit phaseout for joint 
filers is increased from $110,000 to $150,000 (for married 
individuals filing separate returns, the amount applicable to 
an unmarried individual, i.e., $75,000, applies). Third, the 
income phaseout thresholds are indexed for inflation to the 
nearest $1,000 in calendar years beginning after 2014.

                             EFFECTIVE DATE

    The proposal applies to taxable years beginning after 
December 31, 2014.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the vote of the Committee on Ways and Means in its 
consideration of H.R. 4935, the Child Tax Credit Improvement 
Act of 2014, on June 25, 2014.
    The bill, H.R. 4935, was ordered favorably reported as 
amended by a roll call vote of 22 yeas to 15 nays (with a 
quorum being present). The vote was as follows:

----------------------------------------------------------------------------------------------------------------
         Representative             Yea       Nay     Present     Representative      Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Camp.......................        X   ........  .........  Mr. Levin........  ........        X   .........
Mr. Johnson....................        X   ........  .........  Mr. Rangel.......  ........  ........  .........
Mr. Brady......................        X   ........  .........  Mr. McDermott....  ........        X   .........
Mr. Ryan.......................        X   ........  .........  Mr. Lewis........  ........        X   .........
Mr. Nunes......................        X   ........  .........  Mr. Neal.........  ........        X   .........
Mr. Tiberi.....................        X   ........  .........  Mr. Becerra......  ........        X   .........
Mr. Reichert...................        X   ........  .........  Mr. Doggett......  ........        X   .........
Mr. Boustany...................        X   ........  .........  Mr. Thompson.....  ........        X   .........
Mr. Roskam.....................        X   ........  .........  Mr. Larson.......  ........        X   .........
Mr. Gerlach....................        X   ........  .........  Mr. Blumenauer...  ........        X   .........
Mr. Price......................        X   ........  .........  Mr. Kind.........  ........        X   .........
Mr. Buchanan...................        X   ........  .........  Mr. Pascrell.....  ........        X   .........
Mr. Smith......................        X   ........  .........  Mr. Crowley......  ........        X   .........
Mr. Schock.....................        X   ........  .........  Ms. Schwartz.....  ........        X   .........
Ms. Jenkins....................        X   ........  .........  Mr. Davis........  ........        X   .........
Mr. Paulsen....................        X   ........  .........  Ms. Sanchez......  ........        X   .........
Mr. Marchant...................        X   ........  .........
Ms. Black......................        X   ........  .........
Mr. Reed.......................  ........  ........  .........
Mr. Young......................        X   ........  .........
Mr. Kelly......................        X   ........  .........
Mr. Griffin....................        X   ........  .........
Mr. Renacci....................        X   ........  .........
----------------------------------------------------------------------------------------------------------------

                     IV. BUDGET EFFECTS OF THE BILL

               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the effects on the budget of the bill, H.R. 4935, as 
reported.
    The bill, as reported, is estimated to have the following 
effect on Federal budget receipts for fiscal years 2014-2024 
(with no effect on such receipts in fiscal year 2014):

                                                                                          FISCAL YEARS
                                                                                      [Billions of dollars]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                      Item                           2015        2016        2017        2018        2019        2020        2021        2022        2023        2024       2015-19     2015-24
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Revenues\1\.....................................       -0.7        -4.7        -7.8        -9.4       -10.9       -12.4       -14.6       -16.1       -18.4       -20.0       -33.5     -114.9
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NOTE: Details do not add to total due to rounding.

                                                     2015        2016        2017        2018        2019        2020        2021        2022        2023        2024       2015-19     2015-24

\1\Estimate contains the following outlay         ..........        \2\         1.6         1.6         2.0         2.0         2.9         3.0         4.0         4.0         5.2       21.0
 effects. . ....................................

\2\Gain of less than $50 million.

B. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
bill involves new or increased budget authority. The Committee 
further states that the revenue-reducing tax provisions involve 
increased tax expenditures. (See amounts in table in Part IV.A, 
above.)

      C. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the CBO, the following statement by CBO is 
provided:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, July 3, 2014.
Hon. Dave Camp,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4935, the Child 
Tax Credit Improvement Act of 2014.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Logan 
Timmerhoff.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 4935--Child Tax Credit Improvement Act of 2014

    H.R. 4935 would increase the amount of the child tax credit 
and the income thresholds at which the credit begins to phase 
out for taxpayers. Under current law, an individual may claim a 
tax credit of $1,000 for each qualifying child under the age of 
17. H.R. 4935 would index the $1,000 amount for inflation 
starting in 2015. In addition, under current law the aggregate 
amount of child credits that may be claimed is phased out for 
married individuals filing joint tax returns with modified 
adjusted gross income over $110,000 and for unmarried 
individuals with such income over $75,000. H.R. 4935 would 
increase the beginning of the phaseout for joint filers to 
$150,000, and it would index for inflation the beginning points 
of the income phaseouts for all taxpayers starting in 2015. For 
married taxpayers filing separately, the beginning of the 
income phaseout would increase from $55,000 under current law 
to $75,000, indexed for inflation.
    The staff of the Joint Committee on Taxation (JCT) 
estimates that enacting H.R. 4935 would reduce revenues over 
the 2014-2024 period by about $93.9 billion, and increase 
direct spending by about $21.0 billion over that period. JCT 
therefore estimates that enacting the legislation would 
increase federal budget deficits by about $114.9 billion over 
the 2014-2024 period.
    The Statutory Pay-As-You-Go Act of 2010 establishes budget-
reporting and enforcement procedures for legislation affecting 
direct spending and revenues. Because enacting H.R. 4935 would 
affect revenues and direct spending, pay-as-you-go procedures 
apply. The net changes in revenues and outlays that are subject 
to pay-as-you-go procedures are shown in the following table.
    JCT has determined that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act.
    The CBO staff contact for this estimate is Logan 
Timmerhoff. The estimate was approved by David Weiner, 
Assistant Director for Tax Analysis.

                               CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4935, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON WAYS AND MEANS ON JUNE 25, 2014
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                               By fiscal year, in millions of dollars--
                                     -----------------------------------------------------------------------------------------------------------------------------------------------------------
                                         2014        2015        2016        2017        2018        2019        2020        2021        2022        2023        2024      2014-2019   2014-2024
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   NET INCREASE IN THE DEFICIT

Statutory Pay-As-You-Go Effects.....          0         724       4,687       7,799       9,388      10,896      12,362      14,557      16,100      18,352      19,994      33,494     114,860
Memorandum:
    Changes in Outlays..............          0           0          33       1,565       1,598       1,962       1,978       2,941       2,964       3,954       3,982       5,158      20,977
    Changes in Revenues.............          0        -724      -4,654      -6,234      -7,790      -8,934     -10,384     -11,616     -13,136     -14,398     -16,012     -28,336    -93,883
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Staff of the Joint Committee on Taxation.
Note: Components may not sum to totals because of rounding.

                    D. Macroeconomic Impact Analysis

    In compliance with clause 3(h)(2) of rule XIII of the Rules 
of the House of Representatives, the following statement is 
made by the Joint Committee on Taxation with respect to the 
provisions of the bill amending the Internal Revenue Code of 
1986: the effects of the bill on economic activity are so small 
as to be incalculable within the context of a model of the 
aggregate economy.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE

          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives (relating to oversight findings), 
the Committee advises that it was as a result of the 
Committee's review of the provisions of H.R. 4935 that the 
Committee concluded that it is appropriate to report the bill, 
as amended, favorably to the House of Representatives with the 
recommendation that the bill do pass.

        B. Statement of General Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
bill contains no measure that authorizes funding, so no 
statement of general performance goals and objectives for which 
any measure authorizes funding is required.

              C. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
    The Committee has determined that the bill does not contain 
Federal mandates on the private sector. The Committee has 
determined that the bill does not impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments.

                D. Applicability of House Rule XXI 5(b)

    Rule XXI 5(b) of the Rules of the House of Representatives 
provides, in part, that ``A bill or joint resolution, 
amendment, or conference report carrying a Federal income tax 
rate increase may not be considered as passed or agreed to 
unless so determined by a vote of not less than three-fifths of 
the Members voting, a quorum being present.'' The Committee has 
carefully reviewed the bill, and states that the bill does not 
involve any Federal income tax rate increases within the 
meaning of the rule.

                       E. Tax Complexity Analysis

    The following statement is made pursuant to clause 3(h)(1) 
of rule XIII of the Rules of the House of Representatives. 
Section 4022(b) of the Internal Revenue Service Restructuring 
and Reform Act of 1998 requires the staff of the Joint 
Committee on Taxation (in consultation with the Internal 
Revenue Service and the Treasury Department) to provide a tax 
complexity analysis. The complexity analysis is required for 
all legislation reported by the Senate Committee on Finance, 
the House Committee on Ways and Means, or any committee of 
conference if the legislation includes a provision that 
directly or indirectly amends the Internal Revenue Code and has 
widespread applicability to individuals or small businesses. 
For each such provision identified by the staff of the Joint 
Committee on Taxation a summary description of the provision is 
provided along with an estimate of the number and type of 
affected taxpayers, and a discussion regarding the relevant 
complexity and administrative issues.
    Following the analysis of the staff of the Joint Committee 
on Taxation are the comments of the IRS and Treasury regarding 
each of the provisions included in the complexity analysis.

1. Modifications to child tax credit

            Summary description of the provisions
    The proposal modifies the child tax credit in three ways. 
First, the $1,000 credit amount is indexed for inflation to the 
nearest multiple of $50 in calendar years beginning after 2014. 
Second, the beginning of the child credit phaseout for joint 
filers is increased from $110,000 to $150,000 (for married 
individuals filing separate returns, the amount applicable to 
an unmarried individual, i.e., $75,000, applies). Third, the 
income phaseout thresholds are indexed for inflation to the 
nearest $1,000 in calendar years beginning after 2014.
            Number of affected taxpayers
    It is estimated that the provision will affect over ten 
percent of small business tax returns.
            Discussion
    While many taxpayers claim the child tax credit, the 
modifications to the child tax credit contained in the bill are 
not likely to either increase or reduce the compliance burden 
on affected taxpayers.

  F. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill, and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                   G. Duplication of Federal Programs

    In compliance with sec. 3(j)(2) of H. Res. 5 (113th 
Congress), the Committee states that no provision of the bill 
establishes or reauthorizes: (1) a program of the Federal 
Government known to be duplicative of another Federal program, 
(2) a program included in any report from the Government 
Accountability Office to Congress pursuant to section 21 of 
Public Law 111-139, or (3) a program related to a program 
identified in the most recent Catalog of Federal Domestic 
Assistance, published pursuant to the Federal Program 
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No. 
98-169).

                 H. Disclosure of Directed Rule Makings

    In compliance with sec. 3(k) of H. Res. 5 (113th Congress), 
the following statement is made concerning directed rule 
makings: The Committee estimates that the bill requires no 
directed rule makings within the meaning of such section.

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

            SECTION 24 OF THE INTERNAL REVENUE CODE OF 1986

SEC. 24. CHILD TAX CREDIT.

  (a) * * *
  (b) Limitations.--
          (1) * * *
          (2) Threshold amount.--For purposes of paragraph (1), 
        the term ``threshold amount'' [means--
                  [(A) $110,000 in the case of a joint return,
                  [(B) $75,000 in the case of an individual who 
                is not married, and
                  [(C) $55,000 in the case of a married 
                individual filing a separate return.
        For purposes of this paragraph, marital status shall be 
        determined under section 7703.] means $75,000 (twice 
        such amount in the case of a joint return).

           *       *       *       *       *       *       *

  (g)  Inflation Adjustment.--
          (1) In general.--In the case of any taxable year 
        beginning after 2014, the $1,000 amount in subsection 
        (a) and the $75,000 amount in subsection (b)(2) shall 
        each be increased by an amount equal to--
                  (A) such dollar amount, multiplied by
                  (B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in 
                which the taxable year begins, determined by 
                substituting ``calendar year 2013'' for 
                ``calendar year 1992'' in subparagraph (B) 
                thereof.
          (2) Rounding.--Any increase determined under 
        paragraph (1) shall be rounded--
                  (A) in the case of the $1,000 amount in 
                subsection (a), to the nearest multiple of $50, 
                and
                  (B) in the case of the $75,000 amount in 
                subsection (b)(2), to the nearest multiple of 
                $1,000.

                         VII. DISSENTING VIEWS

    Notwithstanding that there is strong support for making 
improvements to the Child Tax Credit, we opposed this bill 
because it leaves behind the expansions to the refundable 
portion of the Child Tax Credit that will expire in 2017.
    The bill does nothing to provide certainty to, and address 
the child-rearing costs of, low-income working families in the 
future, because it does not make permanent the expansions to 
the refundable portion of the Child Tax Credit. The expansions 
ensure that low-income families are able to benefit from this 
credit. One of these expansions reduces the threshold level of 
income that must be earned to qualify for the refundable 
portion of the Child Tax Credit. The reduction in the threshold 
is vitally important for low-income families.
    While failing to make permanent the expansions that benefit 
low-income families, the bill expands and makes permanent the 
availability of the Child Tax Credit to many new, upper middle-
income families whose incomes are too high to qualify for the 
credit under current law. Under the bill, families making 
between $150,000 and $205,000 who have children would be newly 
eligible for the Child Tax Credit, and will continue to be 
eligible for the Child Tax Credit in 2018 and beyond. However, 
because the bill does not make permanent the expansions that 
benefit low-income families, a family making minimum wage would 
lose a portion of their credit in 2018 and going forward due to 
the increased threshold for the refundable portion of the 
credit. We oppose this disparity in the treatment of these 
families.
    In addition to our substantive concerns with the bill, we 
also believe that it should not be made permanent by adding to 
the deficit without any revenue offset. In three short months, 
Republicans on the Committee have approved 14 tax bills that 
would add a stunning $825 billion to the deficit and there does 
not appear to be an end in sight. Chairman Camp's Tax Reform 
Act of 2014 discussion draft (the ``Republican tax reform 
plan'') was revenue neutral and did not add to the deficit. 
These bills are going in the opposite direction. We should be 
considering these bills in the context of a revenue-neutral, 
bipartisan tax reform plan.
    To put the combined $825 billion cost into context, it is 
1.7 times the entire projected federal deficit for this year 
and $241 billion more than what the total non-defense 
discretionary spending (e.g., medical research, education, 
veterans' pensions and health care, transportation, etc.) will 
be in 2014. It is more than nine times what we spend annually 
on education, job training, and social services. It is almost 
14 times what we appropriate for veterans' health care and 
benefits in a year, and it is 27 times more than we spend on 
medical research. It is more than we spend to pay earned Social 
Security benefits to 58 million Americans--one in four American 
families--for a year. Unoffset tax cuts amounting to $825 
billion is $2,600 in debt for every man, woman, and child in 
the United States.
    Make no mistake, this is part of the Republicans' bigger 
plan to force cuts in spending in response to the increased 
deficit from their reckless tax cuts. Republicans already have 
cut non-defense appropriations below the level needed to keep 
up with inflation every year since 2011, putting us on a path 
to the lowest level of domestic investment (as a percent of 
GDP) since we began tracking it in 1962. By 2018, real non-
defense discretionary spending is projected to be 18 percent 
lower than it was in 2010. Americans feel those cuts every day. 
They result in overcrowded classrooms for our children, fewer 
food safety inspections, slower progress on medical research to 
fight deadly diseases, delays in highway repairs, waiting lists 
for child care, early national park closings, reduced 
investment in small businesses, and delays in awarding earned 
Medicare and Social Security benefits.
    We found it hypocritical that, six months ago, Republicans 
let emergency unemployment insurance expire for more than 1.3 
million Americans, a number that has now grown to 3 million, by 
arguing that an adequate offset had yet to be proposed. In 
early April, the Senate came to a bipartisan agreement on an 
offset after months of painstaking negotiations. Yet House 
Republicans still refuse to act.
            Sincerely,
                                           Sander M. Levin,
                                                    Ranking Member.

                                  
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