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From what I've read, the adoption tax credit has been preserved in both the House and Senate versions of the tax changes. So, it appears to be safe. At least for now.
The issue I have with many tax credits is that they single out certain groups for benefits while ignoring others. Thus, the adoption credit is obviously a big help for adoptive families (it was certainly a huge help for me), but people who incur expenses while giving birth don't get a credit. The mortgage credit benefits homeowners, but renters get nothing. People who borrow to pay for college get a credit, but those who pay their own way up front get nothing. And so on.
I would prefer that tax credits be designed to encourage actions or behaviors that benefit society, in whatever form they take. Having children benefits society, so all expenses relating to "obtaining" children (whether through birth or adoption) should get a credit. Shelter is a necessity of life (along with food and clothing), so costs relating to obtaining shelter, be it owned or rented, should get a credit. Having an educated population benefits society, so educational expenses should get a credit, regardless of how they were financed. And so on.
Of course, it's easy for me to wax philosophical, because I've already received the benefit of the adoption credit. I would probably be singing a far different tune if I were in the process right now, and I was faced with losing something worth multiple thousands of dollars.
From what I've read, the adoption tax credit has been preserved in both the House and Senate versions of the tax changes. So, it appears to be safe. At least for now.
The issue I have with many tax credits is that they single out certain groups for benefits while ignoring others. Thus, the adoption credit is obviously a big help for adoptive families (it was certainly a huge help for me), but people who incur expenses while giving birth don't get a credit. The mortgage credit benefits homeowners, but renters get nothing. People who borrow to pay for college get a credit, but those who pay their own way up front get nothing. And so on.
I would prefer that tax credits be designed to encourage actions or behaviors that benefit society, in whatever form they take. Having children benefits society, so all expenses relating to "obtaining" children (whether through birth or adoption) should get a credit. Shelter is a necessity of life (along with food and clothing), so costs relating to obtaining shelter, be it owned or rented, should get a credit. Having an educated population benefits society, so educational expenses should get a credit, regardless of how they were financed. And so on.
Of course, it's easy for me to wax philosophical, because I've already received the benefit of the adoption credit. I would probably be singing a far different tune if I were in the process right now, and I was faced with losing something worth multiple thousands of dollars.
Although we come from different sides of the political spectrum, I happen to agree with your comment that you "would prefer tax credits be designed to encourage actions and behavior that benefits society..."
WOW. I could have said that, and I frequently do say a variation of the very same thing!
The tax credit was not around when we adopted. If it was, we were earning too much to use it, but we were blessed financially so it was a "non issue" for us. I think it's a positive tax credit for children, families and society. Since approximately 60% of adoptions involve families who are middle income, or lower middle income, I could see adoptions - especially from foster care - diminishing because the adoption of older children has costs associated with it.
Generally, the children with the most issues are somehow adopted by the families with the least resources, financial and otherwise. This is gleaned from a book I read several years ago entitled "The Book of David". It explores a particular case where a child was murdered by biological parents who had already murdered another child and had a long history with family and children's services.
It argues that had DFS or CPS listened to the parents - who clearly did not like that child, and practically said as much, the child's life would have been spared and the boy would have been easily adopted by many young,childless couples. The book generally argues for earlier termination, and less focus on calls and reports to CPS about spanking and other non-issues.
So, as you understand it, the adoption tax credit stays? There is a couple in my church who was looking into adoption and without the tax credit, a child will remain in foster care and a family will remain childless.
In terms of tax cuts, I can not make sense of why people should get a tax break for private jets or golf course ownership. That blows my mind.
I'm not up to what the latest is on the adoption tax credit, but it was a one time pay out to help with actual costs of adopting, not anything continuing to care for the children. When adopting through the state, in the 2 states we were in, there was no cost. Foster children in state care had no fees, even with the intrastate compact, children in foster care moving from one state to another for placement had funds move with them.
We did get an adoption tax credit of the max of $2,000 (1/2 the adoption fee we paid the agency which was a very reduced rate to begin with) to pay for the adoption of our son with DS as an infant from a private adoption agency. Had we of adopted through the state, we would probably have gotten continued payments as many were getting subsistence on a monthly basis, but had he been in state care, he would probably have been 7 or 8 years old before he got out of the system if then.
Although I am sure this won't be popular, I believe the adoption tax credit should be given for US adoptions only since we have so many children needing homes. More to focus on the needs of the children.
Although we come from different sides of the political spectrum, I happen to agree with your comment that you "would prefer tax credits be designed to encourage actions and behavior that benefits society..."
WOW. I could have said that, and I frequently do say a variation of the very same thing!
Quote:
Originally Posted by sheena12
So, as you understand it, the adoption tax credit stays? There is a couple in my church who was looking into adoption and without the tax credit, a child will remain in foster care and a family will remain childless.
From what I've read, both the House and the Senate are keeping it in their plans. The two plans still need to be reconciled in committee before being sent to the president, but I can't imagine that if both sides want it, the joint committee would remove it. So I think the people in your church are safe to proceed.
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