[NowWhat]

Hi. I just was wondering if anyone knew what John McCain was talking about when he said that he wanted to double the child credit tax from $3500 to $7000? Where is that figure coming from? Isn't the child tax credit currently only $1000?

I am trying to research it, but am coming up with nothing. I figured if he was so off base about the number that someone would have called him on it, but they aren't. So what am I missing??

[tomder55]

The current law allows for $1,000 per child for up to three children.

There is also a provision that says if your child earns more than $3500 /yr and is not a student then you can't claim the child . Perhaps that is what he was referring to but I don't thinks so.

[NowWhat]

I found this on the Phoenix Business Journal

Arizona Sen. John McCain wants to suspend federal gasoline taxes for the summer and raise the child tax credit from $3,500 to $7,000 per kid.
McCain, the presumptive Republican presidential nominee, unveiled his economic plans Tuesday in Pennsylvania.
They include a Memorial Day to Labor Day suspension of the 18.4 cents-per-gallon federal gasoline tax and 24.4 cents-per-gallon levy on diesel fuel. The move comes as gasoline prices stand at $3.39 per gallon nationally, according to AAA.
Some state lawmakers also favor suspending Arizona's 19 cent-per-gallon gasoline tax in light of high fuel prices.
McCain also said Tuesday he wants to double tax write-offs for children from $3,500 per dependent to $7,000 per dependent. McCain said the two proposals will help middle-class families and consumers facing inflation and a tough economy.
The Arizona senator's Democratic presidential rivals -- Barack Obama and Hillary Clinton -- have said they want to roll back some recent tax cuts that benefit big business and wealthy.
McCain's gasoline tax plan comes as Arizona Gov. Janet Napolitano and some business allies consider putting a 1-cent state sales tax increase on the November ballot to fund transportation projects.

So, I am just curious - is the $1000 completely separate? Is he referring to the amount of write-offs you can take?
I am so confused!

[tomder55]

I believe this speech sometime in August introduced his idea :

Some of the richest people I've ever known in my life are the most unhappy. I think that rich is — should be defined by a home, a good job and education and the ability to hand to our children a more prosperous and safer world than the one that we inherited. I don't want to take any money from the rich. I want everybody to get rich. I don't believe in class warfare or redistribution of the wealth. But I can tell you for example there are small businessmen and women who are working 16 hours a day, seven days a week that some people would classify as, quote, 'rich,' my friends, who want to raise their taxes and raise their payroll taxes. Let's have — keep taxes low. Let's give every family in America a $7,000 tax credit for every child they have. Let's give them a $5,000 refundable tax credit to go out and get the health insurance of their choice. Let's not have the government take over the health care system in America.
“So I think if you're just talking about income, how about $5 million. But seriously, I don't think you can — I don't think, seriously that — the point is that I'm trying to make here seriously — and I'm sure that comment will be distorted, but the point is — the point is — the point is that we want to keep people's taxes low and increase revenues. And my friend, it was not taxes that mattered in America in the last several years. It was spending. Spending got completely out of control. We spent money in a way that mortgaged our kids futures. My friends, we spent $3 million of your money to study the DNA of bears in Montana. Now I don't know if that was a paternity issue or a criminal issue, but the point is — but the point is it was $3 million of your money. It was your money.
“And you know, we laugh about it, but we cry and we should cry because the Congress is supposed to be careful stewards of your tax dollars. so what did they just do in the middle of an energy crisis when in California we are paying $4 a gallon for gas, went on vacation for five weeks. I guarantee you, two things they never miss, a pay raise and a vacation. And we should stop that and call them back and not raise your taxes. We should not and cannot raise taxes in tough economic times. So it doesn't matter really what my definition of rich is because I don't want to raise anybody's taxes.”

But I just figured out what he means. He is not talking about a CREDIT . What he is talking about is the tax exemption that allows you to deduct $3500 /child as per 2008 schedule .

[NowWhat]

Okay, it is just so confusing.
So, $1000 will remain in tact. He is just proposing to give us more things to write off?

Again, I am confused!!

[excon]

Hello Now:

Nahhhh, YOU'RE not confused. The old white haired dude is.

excon

[tomder55]

Under the current tax code, families with incomes up to $110,000 a year can claim the Child Tax Credit .

His proposal was for the deduction.