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June
4, 2002
(House)
H.R. 4800 - Permanent Expansion of the Adoption Credit and
Adoption Assistance Programs
(Rep. Camp (R) Michigan)
The
Administration strongly supports House passage of H.R. 4800. The
Administration is particularly pleased that the House is acting
now to make an important part of the President's tax relief plan
permanent. Making the tax relief for adoptions permanent will provide
financial relief to families taking this important step and will
ensure that families can make long-term plans for adoptions at the
times that best suit their needs. Adoption is a wonderful way to
build a family and to provide a loving permanent family to a child
in need.
The
Economic Growth and Tax Relief Reconciliation Act of 2001 provided
well-timed and much needed tax relief to the American people and
laid the foundation for further long-term economic growth. Key elements
of this relief are: a reduction in income tax rates, including a
new low 10-percent rate; elimination of the death tax; an increase
in the child tax credit from $500 to $1,000 per child; a reduction
in the marriage penalty; and extension and expansion of the adoption
credit and the exclusion from income for employer-provided adoption
assistance.
Failure
to make the President's tax cut permanent would increase taxes by
an average of $1,040 for 104 million taxpayers, including workers,
married couples and families with children. In 2011, a median-income
family of 4 would see their taxes increase by $1,866 if the President's
tax cut were not extended. Failure to make the tax relief for adoptions
permanent would increase taxes by $647 million.
The
Administration urges quick action in the Congress to reduce the
financial burden of families undertaking adoption by making the
tax relief for adoptions permanent.
Pay-As-You-Go-Scoring
Any
law that would reduce receipts or increase direct spending is subject
to the PAYGO requirements of the Balanced Budget and Emergency Deficit
Control Act (BEA) and could cause a sequester of mandatory programs
in any fiscal year through 2006. The requirement to score PAYGO
costs expires on September 30, 2002, and there are no discretionary
caps beyond 2002. The Administration will work with Congress to
ensure fiscal discipline consistent with the President's budget
and a quick return to a balanced budget. The Administration will
also work with Congress to ensure that any unintended sequester
of spending does not occur.
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