Marco Rubio, Mike Lee, push their ‘parent penalty’ tax reform

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Contending that parents are double-taxed for children, Florida’s U.S. Sen. Marco Rubio and Utah’s Mike Lee are again pushing a plan to eliminate the so-called “parent penalty” in tax reform, with a letter to leaders of the U.S. Senate and House of Representatives.

“Our tax code today treats parents unfairly. The payroll taxes that help pay for federal retirement benefits fall on American parents who simultaneously bear the financial cost of raising their children, the next generation of workers whose paychecks will be taxed to fund federal retirement benefits. This function of the tax code creates an implicit ‘parent tax penalty’ – in effect, a tax bias against parents,” Lee and Rubio, both Republicans, argue in a letter they sent Wednesday to the chairs and ranking members of the Senate Committee on Finance and the House Committee on Ways and Means.

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“We have long advocated for reducing the burden of double taxation and freeing private-sector investment from tax penalties through full expensing, and we are glad to see House Republicans share these priorities,” they write.

“Of course, tax reform should not only reduce the burdens that businesses face, but also do the same for working families. Families are the building blocks of our country, the fundamental units of society, and vital to passing down our values from generation to generation. Strong families are also incubators of economic opportunity, financial security, and generate the social capital upon which our free enterprise economy and constitutional republic depend.

With this in mind, it is concerning that our tax code today treats parents unfairly. The payroll taxes that help pay for federal retirement benefits fall on American parents who simultaneously bear the financial cost of raising their children, the next generation of workers whose paychecks will be taxed to fund federal retirement benefits. This function of the tax code creates an implicit “parent tax penalty” – in effect, a tax bias against parents.

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MARCO, MARCO, MARCO. I can hear the chants now. Truly a man of the people and just days into the 115th Congress is killing it! So many substantive issues are being rectified by Marco its otherworldly! Marco 20/20 Vision. Foresight. Growth.