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Contact: Gordon Smith Press Office
Phone: 202-224-3753 |
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Smith, Lincoln Push for Family Tax Relief
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June 5th, 2008 - Washington, D.C. - Today, Senators Gordon Smith (R-OR) and Blanche Lincoln (D-AK) teamed up to introduce bipartisan legislation that would put precious dollars back in the pockets of working families in this turbulent time of mounting food and energy prices. The senators’ bill, the Family Tax Relief Act of 2008 would expand child care tax credits, make adoption tax relief permanent and strengthen a tax deduction for school teachers.
“We cannot leave working parents and teachers behind in the face of rising living expenses” said Smith. “This relief will update and strengthen the tax system to ensure that those who sacrifice for others are able to put gas in the tank and food on the table.”
Oregon is the least affordable state for preschool age care in the nation and ranks ninth among the least affordable states for general infant care. In 2006, the average annual price for full-time infant and preschool care was over $9,000 - 46 percent of a median single parent income and 15 percent of a median two parent income. In every region of the U.S., average monthly child care fees for an infant are higher than the average amount that families spend on food.
The Family Tax Relief Act includes the following provisions:
- Child Care Credit - Makes the child care credit refundable for those eligible, increases the maximum credit rate from 35 to 50 percent, boost eligible expenses to $5,000 for one child and $10,000 for two or more children and adjust expenses for inflation.
- Teacher Expenses Deduction – Permanently renews and expands the tax deduction for teachers for expenses paid for supplies, such as books and computer equipment. The bill would increase the deduction to $450 from $250 and expand eligible expenses to include professional development.
- Adoption Tax Relief - Makes the adoption tax credit permanent. Current law, which provides for an adoption tax credit of 100 percent of qualified expenses up to $10,960, is set to expire in 2010.
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