Fixing the Parent Tax Penalty

Senator Mike Lee
2017-10-24 20:07:47
October 24, 2017 Fixing the Parent Tax Penalty What is the "Parent Tax Penalty"? The parent tax penalty is a glitch in the federal tax code that forces parents to contribute to senior entitlement programs not once, but twice. First, they pay their taxes - just like everyone else. They then incur the costs of raising their children - who of course grow up to become the next generation of taxpayers. Currently, the tax code does not account for parents' investment in their children, and thus imposes an unfair "parent tax penalty." For example, two couples, - one with children, one without - who earn identical incomes will pay the same amount in payroll taxes as their contributions to Social Security and Medicare. But the couple with kids will spend over $200,000, per child, raising the children who will eventually pay for the retirement benefits of both couples. Since both couples receive identical benefits, there is unequal treatment of parents who made the investment to raise the future taxpayers that keep the system funded. Hence, the parent tax penalty. Expanding the Child Tax Credit would be a good first step forward in eliminating this discrimination. Fixing the Parent Tax Penalty Click here to watch Live Town Hall on Wednesday Join Senator Mike Lee in an upcoming Access Live event on October 25th at 5:00 p.m. MT. Last week the Senate took the first step towards providing tax relief for hardworking American families by expanding the child tax credit. He looks forward to discussing this issue and answering any other questions you have. Sign up to be part of this event and join the discussion. To receive a phone call at the time of the event, you can register online now. Those who want to stream the event live on their computer or mobile device can use this link when the event starts: lee.senate.gov/live I look forward to having you join me for this event. Washington, D.C. Office 361A Russell Senate Office Building Washington, D.C., 20510 Phone: 202.224.5444 Fax: 202.228.1168 Salt Lake City Wallace F. Bennett Federal Building 125 South State Suite 4225 Salt Lake City, UT 84138 Phone: 801.524.5933 Fax: 801.524.5730 St. George Office of Senator Michael S. Lee 285 West Tabernacle Suite 200 St. George, UT 84770 Phone: 435.628.5514 Ogden James V. Hansen Federal Building 324 25th Street Suite 1410 Ogden, Utah 84401 Phone: 801-392-9633 Fax: 801-392-9630 SaveSaveSaveSaveSave SaveSaveSave SaveSave SaveSaveSave Save This message was intended for: xxx You were added to the system October 2, 2015. For more information please follow the URL below: newsletter.senate.gov/p/isZUTspocN Follow the URL below to update your preferences or opt-out: newsletter.senate.gov/p/osZUTspocN To unsubscribe from future mailings, send an email to mailto:xxx?Subject=Unsubscribe&body=Please%20remove%20me%20from%20further%20mailings with "Unsubscribe" as the subject line.
October 24, 2017
Mike Lee US Senator for Utah

Fixing the Parent Tax Penalty

What is the “Parent Tax Penalty”?

The parent tax penalty is a glitch in the federal tax code that forces parents to contribute to senior entitlement programs not once, but twice. 

First, they pay their taxes – just like everyone else. They then incur the costs of raising their children – who of course grow up to become the next generation of taxpayers. Currently, the tax code does not account for parents’ investment in their children, and thus imposes an unfair “parent tax penalty.”  

For example, two couples, - one with children, one without – who earn identical incomes will pay the same amount in payroll taxes as their contributions to Social Security and Medicare.  But the couple with kids will spend over $200,000, per child, raising the children who will eventually pay for the retirement benefits of both couples.  

Since both couples receive identical benefits, there is unequal treatment of parents who made the investment to raise the future taxpayers that keep the system funded.  Hence, the parent tax penalty. Expanding the Child Tax Credit would be a good first step forward in eliminating this discrimination.

Fixing"the Parent Tax Penalty

Click"here to watch

Live Town Hall on Wednesday

Join Senator Mike Lee in an upcoming Access Live event on October 25th at 5:00 p.m. MT. Last week the Senate took the first step towards providing tax relief for hardworking American families by expanding the child tax credit. He looks forward to discussing this issue and answering any other questions you have. Sign up to be part of this event and join the discussion.

To receive a phone call at the time of the event, you can register online now. Those who want to stream the event live on their computer or mobile device can use this link when the event starts: lee.senate.gov/live

I look forward to having you join me for this event.

Washington, D.C. Office
361A Russell Senate Office Building
Washington, D.C., 20510
Phone: 202.224.5444
Fax: 202.228.1168
Salt Lake City
Wallace F. Bennett Federal Building
125 South State
Suite 4225
Salt Lake City, UT 84138
Phone: 801.524.5933
Fax: 801.524.5730
St. George
Office of Senator Michael S. Lee
285 West Tabernacle
Suite 200
St. George, UT 84770
Phone: 435.628.5514
Ogden
James V. Hansen Federal Building
324 25th Street
Suite 1410
Ogden, Utah 84401
Phone: 801-392-9633
Fax: 801-392-9630



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