An Act Establishing A Child Personal Income Tax Deduction.
The implementation of this tax deduction is expected to have a meaningful impact on state tax laws, allowing families to claim deductions that could cumulatively result in decreased revenue for the state. While proponents of the bill argue that the financial relief afforded by the tax deduction will help alleviate the economic pressures faced by families, critics may raise concerns about the potential long-term implications for state funding, particularly in education and social services which often rely on stable tax revenue.
House Bill HB05418 proposes the establishment of a personal income tax deduction of $2,000 per child for taxpayers. Introduced in the January Session of 2025 by Representative Carney, this legislative act aims to provide financial relief to families with children by reducing their overall tax burden. The underlying intention of this proposal is to increase the disposable income of families, thereby supporting child-related expenses and promoting overall economic well-being among households with children.
Discussion surrounding HB05418 could center on the effectiveness and fairness of tax deductions as a means of supporting families. Supporters may assert that this deduction fosters a family-friendly tax policy and addresses the financial challenges encountered by parents. Conversely, opponents might argue that the bill could exacerbate inequalities in tax benefits, depending on income levels and the number of children per taxpayer, and thus question whether it is the best method of providing assistance to families in need.