Policy Priorities

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Budget Watch: This Week...

February 13, 2012

President Delivers Budget Recommendations

It’s that time of year again…CDF Budget Watch is back!

As we continue to monitor unresolved budget issues from last year, the next round of budget battles is already beginning. On Monday, February 13, President Obama delivered his recommendations for spending in fiscal year (FY) 2013. Check out our Budget Watch Page for a refresher on how the process is supposed to work and for a little reminder of how last year’s Budget Control Act will affect the FY 2013 budget process. Congress is still working to resolve three outstanding budget issues that carried over from 2011 – the payroll tax cut, extension of unemployment insurance and the Medicare “doc fix.” The current extension of these programs ends on February 29th. Reports suggest that the 20-member Congressional committee assembled to find a solution remains at odds over how to pay for the package and whether or not additional policy issues will be tied to its passage. One proposal in particular from the House of Representatives would harm millions of children by imposing serious restrictions to the Child Tax Credit (CTC) and its refundable portion, the Additional Child Tax Credit (ACTC). Notably, this proposal would prohibit Individual Taxpayer Identification Number (ITIN) holders from filing for and claiming the CTC and ACTC. This drastic change in tax policy would take an average of $1,800 a year from the very low income working taxpayers who qualify, adversely impacting up to 5 million children, the majority of whom are U.S. citizens. We’re watching this issue very closely and will continue to update you as developments occur.

Stay tuned to learn how children and low-income families fared in the President’s Budget Proposal!

Click here to view past Budget Watch updates.