H.R.353 - Family First Act (119th Congress)
Summary
H.R. 353, the Family First Act, proposes significant changes to the Internal Revenue Code of 1986, primarily focusing on enhancing the child tax credit and introducing a tax credit for pregnant mothers. The bill also includes provisions to simplify the Earned Income Credit (EIC) and eliminate the additional exemption for dependents and head of household filing status. These changes are set to take effect for taxable years beginning after December 31, 2025.
The proposed child tax credit expansion includes increased base credit amounts, adjustments based on adjusted gross income, and inflation adjustments. The bill also introduces a new tax credit for pregnant mothers with qualifying unborn children, defined as those with a gestational age of 20 weeks or greater, certified by a physician.
Further provisions include modifications to the EIC, elimination of the dependent exemption, elimination of the head of household filing status, exclusion of children from dependent care expense credits, and making permanent the limitation on the deduction for state and local taxes.
Expected Effects
The Family First Act aims to provide financial relief to families through enhanced tax credits, particularly for those with children and pregnant mothers. This could lead to increased disposable income for eligible families, potentially stimulating economic activity. The simplification of the EIC and elimination of certain tax provisions could also streamline tax filing processes.
However, the elimination of the additional exemption for dependents and the head of household filing status could increase the tax burden for some families. The introduction of a tax credit for pregnant mothers may also raise constitutional and ethical considerations.
Overall, the bill's effect would be a redistribution of tax benefits, with some families benefiting from increased credits while others may face higher taxes due to the elimination of existing deductions and filing statuses.
Potential Benefits
- Increased financial assistance for families with children through an enhanced child tax credit.
- New tax credit for pregnant mothers, providing financial support during pregnancy.
- Simplification of the Earned Income Credit (EIC) for taxpayers with children.
- Potential stimulus to the economy through increased disposable income for eligible families.
- Streamlined tax filing processes due to the elimination of certain tax provisions.
Most Benefited Areas:
Potential Disadvantages
- Elimination of the additional exemption for dependents, potentially increasing the tax burden for some families.
- Elimination of the head of household filing status, which could negatively impact single parents.
- Exclusion of children from the credit for expenses for household and dependent care services, affecting working families.
- Potential constitutional and ethical concerns regarding the tax credit for pregnant mothers and the definition of a qualifying unborn child.
- Making permanent the limitation on the deduction for state and local taxes, which disproportionately affects taxpayers in high-tax states.
Most Disadvantaged Areas:
Constitutional Alignment
The Family First Act raises several constitutional considerations. The proposed tax credit for pregnant mothers, specifically the definition of a "qualifying unborn child" and the requirement for physician certification, may implicate privacy rights and potentially conflict with established precedents regarding reproductive rights. These provisions could be challenged under the Due Process Clause of the Fifth and Fourteenth Amendments, which protect individual liberties.
Additionally, the bill's modifications to tax credits and deductions must adhere to the principle of equal protection under the law, as guaranteed by the Fourteenth Amendment. Any differential treatment of taxpayers based on family status or income level must have a rational basis and not be arbitrary or discriminatory. The elimination of the head of household filing status, for example, could be scrutinized for its impact on single-parent families.
While Congress has broad authority to tax and spend under Article I, Section 8 of the Constitution, this power is not unlimited and must be exercised in a manner consistent with other constitutional protections. The courts would likely review the Family First Act to ensure it does not infringe upon fundamental rights or violate the principle of equal protection.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).