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On July 14, the Senate Finance Committee held a hearing on tax cuts enacted in 2001 and 2003 that will expire this year.

At the hearing, David Marzahl, president of the Center for Economic Progress, testified on the importance of refundable tax provisions that expire this year, including the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC).

It remains unclear when Congress will take up the tax package. Bread staff are continuing to follow up with congressional offices that held constituent meetings on Lobby Day.

Congress is still debating what to do about the Dec. 31, 2010, expiration of tax cuts from 2001 and 2003 and of critical tax credits such as the expansions made in 2009 to the Earned Income Tax Credit and the Child Tax Credit.

Spending issues took up most of Congress’ time just before the Independence Day recess and will continue to be a major focus throughout the year.

Bread President David Beckmann was invited to testify before the President’s Fiscal Commission June 30, where he urged members to protect low-income families, particularly in difficult economic times, as they consider recommendations to balance the federal budget.

Congress will act on the expiration of the 2001 and 2003 tax cuts before the end of the year—possibly during their July work period. Stay tuned!

Advocates who could not be present during Bread’s Lobby Day called their senators’ and representatives’ offices, delivering the same message. About 654 calls were placed through Bread’s special toll-free number alone. Thank you to all who lobbied in Washington and by phone!

Congress is working to pass legislation to extend a package of tax credits and social safety net programs. The House is likely to take up the bill early this week, with the Senate considering the bill soon afterward.

The bill includes an extension of unemployment benefits as well as additional funding for the Temporary Assistance for Needy Families (TANF) Emergency Fund, which assists states with programs that include employment programs for low-income workers.

Now until the August congressional recess is a critical time for decisions on tax policies. There is momentum building in Congress around the middle-class tax package, which will include the tax credits Bread is working on—the Earned Income Tax Credit and the Child Tax Credit.

More than a dozen religious groups are urging assistance to low-income working families as an objective of federal tax policy as Congress debates legislation to address a series of tax cuts and tax credits that are set to expire this year.