The Rubio-Lee Child Tax Credit Should Phase In At 21.3%

Click here to read.

Senators Rubio and Lee are proposing to change the CTC phase-in structure so that the benefit phases in at 15.3% starting at $0 of labor income. But their justification for that change -- that the CTC should refund all federal payroll taxes -- actually requires that the phase in rate be 21.3%. The reason for their mistakenly low phase in rate is that they have overlooked the Federal Unemployment Tax.