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WASHINGTON (May 31, 2001) -- Galveston-Houston Bishop Joseph A. Fiorenza, president of the National Conference of Catholic Bishops/U.S. Catholic Conference, praised President Bush for the inclusion in the tax legislation recently passed by Congress of a "refundable" tax credit to help parents cope with the costs of raising children, especially their educational expenses.
Calling it "a provision that the Catholic Bishops of the United States have long sought," Bishop Fiorenza said that he was "extremely happy that with the support and direct intervention of President Bush," it was included in the legislation.
The provision doubles the current child tax credit from $500 to $1000. For the first time, it will be available to families earning between $10,000 and $30,000.
In his May 30th statement, Bishop Fiorenza noted, that "by making the credit `refundable' over the next five years, it is estimated that it will help one half of a million children out of poverty."
For example, parents earning $23,500 who are raising two children will receive $2,000 with which to secure better housing and education for their children. A parent with one child who earns $14,000 would receive $600 through this credit.
"I am grateful to President Bush for recognizing the importance of this investment in our nation's children and families and giving it his full support," Bishop Fiorenza added.
He also commended those in Congress who supported the provision.
In his statement, Bishop Fiorenza described another provision increasing the annual contributions to education IRAs, as well as extending the range of qualified expenses as "also a welcome one."
The provision increases allowable annual contributions to education IRAs from $500 to $2000. It also extends qualified expenses to include costs such as tuition, fees, tutoring, special needs services, and other additional expenses.
Bishop Fiorenza said that the provision "recognizes, for the first in the U.S. tax code, the particular burden shouldered by families struggling to afford extra educational cost for their children enrolled in grades K-12, whether they attend public, private, or religious schools."
Bishop Fiorenza concluded by saying that these provisions "comprise an important step forward for America's families, which, we hope, will be followed by similar advances in the future."
Statement By Bishop Joseph A. Fiorenza, President
of the National Conference of Catholic Bishops
May 30, 2001
I am extremely happy that with the support and direct intervention of President Bush the tax legislation passed by Congress includes a "refundable" tax credit to help parents cope with raising children, especially their educational expenses. It doubles the current child tax credit from $500 to $1000, and it is a provision that the Catholic Bishops of the United States have long sought.
For the first time, this credit will be available to families earning between $10,000 and $30,000. By making the credit "refundable" over the next five years, it is estimated that it will help one half of a million children out of poverty. I am grateful to President Bush for recognizing the importance of this investment in our nation's children and families and giving it his full support. I commend, as well, all in Congress who supported it within this major tax legislation.
A second provision, increasing the annual contributions to education IRAs from $500 to $2000, as well as extending the range of qualified expenses, is also a welcome one. It recognizes, for the first time in the U.S. tax code, the particular burden shouldered by families struggling to afford extra educational cost for their children enrolled in grades K-12, whether they attend public, private, or religious schools.
On behalf of the Bishops of the United States, I express gratitude to President Bush and to the Congress for these provisions in the new legislation. They comprise an important step forward for America's families, which, we hope, will be followed by similar advances in the future.