The Corner

Baby Bonds and Child Credits

An emailer points out one important distinction:

Ramesh, as the father of 5, I know of the tax credits very well.  One thing to remember about Bush’s child tax credits…..They are only applicable to an existing tax liability, not a means of redistribution.  If my tax liability before the credits is $500, the IRS isn’t going to send me a check for $4500 ($5000 child tax credit less tax owed).  I simply “use” $500 of the child tax credits I’m eligible for and essentially leave the rest on the table. 

In the proposal I outlined in NR, you would be able to apply the credit against your total payroll + income tax liability.

Ramesh Ponnuru is a senior editor for National Review, a columnist for Bloomberg Opinion, a visiting fellow at the American Enterprise Institute, and a senior fellow at the National Review Institute.


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