Proposed Pregnancy Tax Break Creates Controversy

In recent years, the issue of pregnancy and maternity leave has become a hot topic in politics. With the proposed pregnancy tax break, the debate has been reignited. This proposed tax break would extend a tax credit to pregnant women in an effort to incentivize them to have children. While supporters say it will help alleviate the financial burden of pregnancy and childcare, opponents argue it is unfair and could lead to unintended consequences.

What is the Proposed Pregnancy Tax Break?

The proposed pregnancy tax break is a tax credit that would be provided to pregnant women in the year that they give birth. The credit amount would be $5,000, and would be available to women who earn less than $200,000 per year. Supporters of the tax break argue that it will help alleviate the costs associated with pregnancy and childbirth, which can be significant. They point out that many women are forced to take time off work during pregnancy and after childbirth, which can have negative financial consequences.

Opponents of the tax break argue that it is unfair and could lead to unintended consequences. They argue that the tax break would primarily benefit wealthier women who can afford to take time off from work without suffering financial consequences. In addition, opponents worry that the tax break could incentivize women to have children solely for the purpose of receiving the tax credit, rather than for personal or societal reasons.

The Debate Over the Proposed Pregnancy Tax Break

The debate over the proposed pregnancy tax break has been fierce, with both sides presenting strong arguments. Supporters of the tax break argue that it will help alleviate the financial burden of pregnancy and childbirth, which can be significant. They point out that many women are forced to take time off work during pregnancy and after childbirth, which can have negative financial consequences. In addition, they argue that the tax break will help to incentivize women to have children, which is important for the health of the country’s economy and population.

Opponents of the tax break, on the other hand, argue that it is unfair and could lead to unintended consequences. They argue that the tax break would primarily benefit wealthier women who can afford to take time off from work without suffering financial consequences. In addition, opponents worry that the tax break could incentivize women to have children solely for the purpose of receiving the tax credit, rather than for personal or societal reasons.

Recent Developments in the Debate

The debate over the proposed pregnancy tax break has been ongoing for several years, but there have been recent developments that are worth noting. In May 2021, the Biden administration proposed its American Families Plan, which includes a provision for paid family and medical leave. This provision would provide up to 12 weeks of paid leave for a range of family and medical reasons, including pregnancy and childbirth. The plan would also increase the amount of the Child Tax Credit, which is already available to parents, from $2,000 per child to $3,000 per child (or $3,600 for children under age 6).

While the American Families Plan does not include the proposed pregnancy tax break, it does address many of the same concerns. In particular, it seeks to alleviate the financial burden of pregnancy and childbirth by providing paid leave and increasing the Child Tax Credit. In addition, it seeks to incentivize parents to have children by providing additional financial support.

This development could have an impact on the ongoing debate over the proposed pregnancy tax break. Supporters of the tax break may be more willing to compromise in light of these new proposals, while opponents may feel that the Biden administration’s proposals address their concerns.

Conclusion

The proposed pregnancy tax break has been a controversial topic in politics for several years. Supporters argue that it will help alleviate the financial burden of pregnancy and childbirth, while opponents argue that it is unfair and could lead to unintended consequences. While the debate over the tax break continues, there have been recent developments that seek to address many of the same concerns. In particular, the Biden administration’s American Families Plan proposes paid family and medical leave and an increase in the Child Tax Credit, which could impact the ongoing debate over the proposed pregnancy tax break. The future of the tax break remains uncertain, but it is clear that the issue of pregnancy and maternity leave will continue to be an important one in politics and society.

Michigan lawmakers have proposed a controversial new law that would give tax breaks to some pregnant women.  If passed, the law would allow for women who were at 12 weeks’ gestation or further at the end of the tax year to claim their fetus as a dependent under the tax code.

Under the current United States tax structure, a new baby counts for an additional $3,700 deduction—but only when it’s born before the tax year is over on December 31.  Parents with “New Year’s babies” born just a day later currently have almost all of the same expenses due to their child, but are not able to claim a tax deduction until the entire year has passed.

Michigan lawmakers proposing the new rule say that it would help out families who are strapped for cash and are having trouble making ends meet, or who are having additional expenses due to the costs of pregnancy, delivery, and birth.

The estimated total cost of the tax law would be around $5 to $10 million dollars according to the state’s House Fiscal agency report.

While the law may sound like it’s designed to help women, some Democratic and women’s rights groups claim it’s actually an attempt to do exactly the opposite.  The Michigan legislature has repeatedly imposed abortion restrictions and attempted to gain more recognition in the legal code for fetal personhood.  In 2006, a law to allow parents of stillborn infants to declare those infants in their tax deductions was passed, and brought some of the same criticisms.  That law has since been repealed, although several other states still maintain some version of a stillbirth tax deduction law.

According to Democratic critics of the law, the proposal would allow Republican lawmakers to “back door” a way to talk about fetuses as people with the same rights as other people.  From there, they see it as a relatively short step to using the same justifications to curtail access to abortion services.

If the law is passed, Michigan will be the only state in the United States that allows parents to declare their child on their taxes before that child is even born.  Several Republican lawmakers advocated the policy, saying that it was not intended to set up the state for additional abortion restrictions and that the bill recognizes the expenses and difficulty of having a new child.

On average, the tax savings to Michigan taxpayers would amount to approximately $160 per family in the year of a woman’s pregnancy.  Democratic lawmakers say that this savings isn’t enough to offset the roughly $600 on average that recent Republican-backed elimination of tax credits has cost working families in Michigan.

In order to qualify for the tax credit if the law is passed, families will need to be able to provide documentation of the gestational age of their unborn child on January 1.  If the fetus is less than 12 weeks old at the new year, no tax deduction will be granted for the pregnancy.

Source: legislature.mi.gov, mlive.com