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.