With current economic trends, having and raising children has become another example of the higher costs of living affecting many Americans. As a result, Representative David Schweikert (R-AZ) has introduced a bill offering tax deductions for the non-medical expenses raising a newborn brings, such as formula, diapers, cribs, strollers, and car seats.
Named the Family Growth and Investment Act, Rep. Schweikert's bill offers a one-time tax deduction for up to $5,000 worth of supplies for a newborn's first year of life whose parents have valid Social Security numbers.
Additional provisions include a $100,000 income cap for single filers and a $200,000 limit for joint filers, and the initial $5,000 deduction increases in the cases of twins or triplets to $10,000 and $15,000, respectively.
Moreover, the deduction is available the following taxable year if taxpayers do not incur deductible expenses in the year of the program's introduction.
Such a bill comes at a time when raising children is already expensive, with a January 2017 report by the US Department of Agriculture showing an average of over $13,000 per year, per child. More recent statistics suggest this number has risen further, with Investopedia estimating that a child born in 2015 will cost $310,605 by the time they turn 17 in 2032, broken down into over $18,000 per year.
In his press release, Rep. Schweikert said, "For many parents, the annual costs of the first years of a child’s life can be daunting regardless of how they raise their family. Already, CBO is projecting that by 2042, there will be more deaths than births in the United States. This pro-family legislation will make it easier for Arizonans and Americans everywhere to enjoy one of life’s greatest gifts. I look forward to working with my colleagues to help advance this bill and make the American dream more attainable than ever."
Schweikert's bill comes on the heels of the House's passage of the Tax Relief for American Families and Workers Act, which includes provisions for the expansion of the Child Tax Credit.
Representative Aaron Bean (R-FL) applauded the passage in a House floor address, calling it "pro-jobs, pro-taxpayer, [and] pro-America."
