Displaying 30+ Stories

Adoption Advocates Celebrate $355M Win with Tax Reform


In a big win for adoption advocates, the House Ways and Means Committee voted to preserve the child adoption tax credit in their Tax Cuts and Jobs Act that's now headed to the House floor for a final vote.
"This is good news," Rep. Chris Smith, R-N.J., author of the adoption credit told CBN News. "Yes it's $355 million…but that's $355 million well spent."
The Senate tax plan unveiled Thursday also protects the adoption credit and other popular deductions like charitable contribution, medical expenses, and graduate school.

Senators Marco Rubio and Mike Lee, however, are disappointed to see the child tax credit not expanded to $2000.

And many Americans are wondering, does the tax plan actually keep more money in their pockets? Sen. Tim Scott, R-S.C., says yes.
"At the end of the day what we're doing first is making sure the hard working American gets to keep more of her money," says Scott. "And number two, that we continue to empower this economy to create jobs in the future today here at home. And the good news is we've accomplished both."
A key difference in the Senate bill is that it calls for a one-year delay in the corporate tax cut, which they hope to make permanent. Scott tells CBN News details of the delay are a work in progress.
"The reality of that is that the expensing and the parts of our bill that will allow for economic growth will happen immediately, there is some tug of war still happening on the corporate tax rate but we're going to have that ironed out here in a couple days," Scott said.
Unlike the House plan, the Senate bill retains 7 tax brackets: 10, 12, 22.5, 25, 32.5, and 35 percent, with the highest bracket slightly lowered to 38.5 percent. It also eliminates the entire deduction for state and local taxes, that people in high tax states like New York and New Jersey.

Democrat Sen. Dick Durbin, D-Illinois, says he's concerned this bill just gives tax breaks to the wealthy and thinks any changes to the corporate tax rate should help smaller corporations and reward those that have stayed in America and not moved overseas.
"Here's the good news for the big corporations, they don't need our help. Many of them are paying almost no federal taxes, federal corporate income taxes," Durbin told CBN News. "But it seems that in my state and other places the small and medium sized companies that really create the jobs pay a higher tax rate, that's not fair. I'll work with Republicans to change that."
Durbin is also concerned Republicans are rushing the bill through.
"It's coming together so quickly no one's really had a chance to study it," Durbin said. "If you're going to change the entire tax plan for goodness sakes, take the time to have a hearing, and witnesses, consider amendments, that's not being done."
Senators on both sides of the aisle will be able to offer amendments as the bill heads to committee for mark up next week.

News Articles