The Adoption Tax Relief Guarantee Act
Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, there is broad bipartisan support for assisting adoptive families in meeting their expenses. Helping families afford the cost of adopting children in loving homes is…
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, there is broad bipartisan support for assisting adoptive families in meeting their expenses. Helping families afford the cost of adopting children in loving homes is clearly a worthy policy, and targeted tax relief can help promote that goal. I, therefore, support this effort to eliminate the sunset provision in the current adoption tax credit, and I want to compliment my colleague, the gentleman from Michigan (Mr. Camp), for his work and leadership on this issue.
This extension is particularly worthwhile given the change in the adoption tax credit that took effect last year. Let me just point that out, Mr. Speaker, the adoption tax credit now provides a guaranteed $10,000 tax credit for the adoption of special-needs children who are classified as being more difficult to place for adoption because of certain factors, including physical, mental or emotional impairment. Prior to that change, it was very difficult for people adopting special-needs children to qualify for the tax credit. In fact, less than 15 percent did, because many of their expenses included in the adoption credit were already paid for.
We know that people who adopt children with special needs incur additional costs, including modifying their home to take care of the physical impairments of the child and other types of expenses. Now that we have modified the tax credit, those families can take advantage of this $10,000 credit, and therefore, it is really helping deal with the placement of special-needs children, one additional reason why it is important for this tax credit program to continue without interruption, one additional reason why this legislation should pass.
My only regret about this legislation is that there was no effort to offset its cost. Relative to the other tax extensions, the cost of the adoption tax credit is relatively modest. Let me point out, Mr. Speaker, that the sunset provision is now in the year 2010. There are many other tax provisions that have much sooner sunset dates that we have not acted on yet and we need to deal with.
I support this change, and it has a modest cost, but I am sorry that we did not take advantage of this opportunity to close some tax loopholes, including those available to companies who ship jobs overseas, that could have offset easily the cost of this bill so we do not continue to add to the growing deficit.
The current budget deficit is $422 billion in this fiscal year, and it is projected to grow to over $1.6 trillion over the next 5 years. This amount will be added to a current overall of $7.3 trillion. It should, therefore, be no surprise that we are about to raise our government debt limit for the third time in just the last 3 years. At some point, we are going to have to own up to the fact that we are simply passing on our obligations to our children rather than living within our means.
Mr. Speaker, I hope we will find a way to pay for this and other tax extenders through commonsense changes in the tax code. In the meantime, I support this extension of the adoption tax credit, and I urge my colleagues to support this legislation but to continue to work for more responsible fiscal policies.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I am pleased to yield 5 minutes to the gentleman from Washington (Mr. McDermott), a member of the Committee on Ways and Means.
(Mr. McDERMOTT asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I yield such time as he may consume to the gentleman from North Dakota (Mr. Pomeroy), a member of the Committee on Ways and Means.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, this discussion is becoming a little bit more interesting than we thought.
Mr. Speaker, I am pleased to yield 2\1/2\ minutes to the gentleman from North Dakota (Mr. Pomeroy).
Mr. Speaker, I am pleased to yield 3 minutes to the gentleman from Washington (Mr. McDermott).
(Mr. McDERMOTT asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, as I said in the beginning, I support this bill. It is good policy, the adoption tax credit. It should be made permanent. This bill will make it permanent. It helps families who need help in adopting children, particularly those with special needs.
But I want to point out that this bill removes the sunset that would take effect in the year 2010. So if this bill were not to be enacted into law this year, I want people to understand that we are not endangering the ability of families to take advantage of the tax credit. There is no urgency as far as the expiration of the tax credit itself is concerned.
I do want to correct statements that I think were made by two of my colleagues, because I think they were misleading when it was said that the passage of this tax credit is consistent with the budget. We have not passed a budget. We have not reconciled the difference between the House and the other body.
Now, I know my colleagues will say, well, we passed one here and we are consistent with what we did. But there is no budget that puts us on a glide path towards responsible budgeting.
That is my concern, Mr. Speaker, and that is one of the reasons I raised the issue. The deficit this year is $422 billion. I do not believe any one of my colleagues is happy with that result.
What will this bill do? It will add a little bit more to the deficit. It will add a little bit more to the red ink of our Nation. I find that regrettable. I think we need to institute budget discipline. We need to offset our expenditures, whether they are in the Tax Code or in the operating budget, so that we do not add to the red ink of the Nation.
Unfortunately, this bill will not do that. And it would be easy for us to agree in a bipartisan manner to the necessary offsets so this bill does not add further to the deficit.
That is the offer that I make on behalf of this side of the aisle. Yes, we support this legislation. Yes, we will work with you to make sure it gets to the President for his signature. But work with us so we do not continue to add red ink and debt to our Nation.
Mr. Speaker, I yield back the balance of my time.