Under pressure, GOP reinstates tax credit on adoptions

Published: Thursday, November 09, 2017 @ 6:02 PM
Updated: Thursday, November 09, 2017 @ 5:35 PM


            House Ways and Means Committee Chairman Kevin Brady, R-Texas, left, introduced an amendment to the House tax reform bill that reinstates a tax credit for families that adopt children. The credit was eliminated in earlier versions of the plan. (AP Photo/J. Scott Applewhite)
            J. Scott Applewhite
House Ways and Means Committee Chairman Kevin Brady, R-Texas, left, introduced an amendment to the House tax reform bill that reinstates a tax credit for families that adopt children. The credit was eliminated in earlier versions of the plan. (AP Photo/J. Scott Applewhite)(J. Scott Applewhite)

The House committee crafting a bill to overhaul the tax code Thursday yielded to pressure from adoption advocates, reinstating a politically popular provision that would provide a tax credit to parents who adopt.

The original version of the GOP bill had removed the tax credit, valued at up to $13,750 in 2017. Under current law, the credit can be applied over the course of five years for parents who adopt children through foster care, domestic private or internationally.

On Thursday, House Ways and Means Committee Chairman Kevin Brady introduced an amendment reinstating the credit. Republicans on the committee approved the bill Thursday, and the full House is expected to vote on the tax plan next week.

RELATED: Overseas adoptions plunge in U.S.

News that the adoption credit might be eliminated had galvanized both the right and the left — a wide ideological swath that included anti-abortion groups and LGBTQ couples, who research indicates are four times as likely to adopt as heterosexual counterparts.

Carol Tobias, president of National Right to Life, applauded the restoration of the credit, saying it “has served as an effective way to encourage adoption by easing the often-steep financial expense that can be incurred by adopting a child.”

Amanda and Arlin Caldwell of Gahanna used the credit twice, once for Alivia, now 5, and once for Ava. 3. Now, they’re hoping they can use it as they work with an attorney in hopes of finding a third child to adopt.

Few families, Amanda Caldwell said, can scrape up the tens of thousands of dollars up front to adopt. Knowing that a tax credit would help offset those expenses, she said, made the process much more stressful.

She was elated by the news that the House had restored the credit. “There is just relief,” she said, admitting she had been “pretty worried” about the elimination of the credit.

RELATED: Negotiations for adoption aid frustrate officials

Brady, R-Texas, an adoptive father of two who had originally backed eliminating the credit, credited a “thoughtful discussion” with the decision to restore the credit. Doing so, he said, would “ensure parents can continue to receive additional tax relief as they open their hearts and their homes to an adopted child.”

Rita Soronen, president and CEO of the Dave Thomas Foundation for Adoption, said the organization was “thrilled.” The credit, she said, shouldn’t have been in contention to be eliminated with.” She said her organization reached out privately to Rep. Pat Tiberi, R-Genoa Twp., a member of the House Ways and Means Committee who, she said, “is very passionate about this.”

She and others had worried that eliminating the credit would provide a chilling effect on adoption. Thomas Taneff, a Columbus-area adoption attorney who is working with the Caldwells, said he worried that eliminating the credit “could create a disincentive for people who need help the most to want to move forward to give a the child a home.”

RELATED: Greater support available for military families seeking to adopt

For parents who adopt out of foster care, the tax credit often helps pay for the special needs that many foster kids have. For those adopting domestically or internationally, it can offset costs ranging from $20,000 to more than $40,000.

Ohio offers a $10,000 tax credit; the two credits combined can mean the difference between being able to afford an adoption and it being cost-prohibitive. In 2015, 1,736 taxpayers claimed the state credit on their tax returns, according to the Ohio Department of Taxation — a value of about $6.4 million. The federal credit is not tracked on a state-by-state basis, but the National Council for Adoption estimates that there were 3,994 adoptions in Ohio in 2014.

On the federal level, the credit is also considered relatively inexpensive, costing the federal government some $300 million in 2015, according to the Tax Policy Center.

Brady had initially defended the elimination of the credit, saying saying families would see savings elsewhere in the tax code — through lower rates and a higher child income tax credit.

“These are tough calls,” he said last week, before restoring the credit. “Do we want a tax code that has special provisions you may use once in your life or do we want a tax code that lowers rates and you get help every year of your life?”

But Chuck Johnson of the Council for Adoption said the tax credit actually saves money, costing .01 percent of the federal budget while the cost of caring for a child in foster care, by most estimates, is more than $100,000 a child per year.

Tax reform dominates as Congress takes a Thanksgiving break

Published: Sunday, November 19, 2017 @ 10:23 PM

Congressional Republicans left Capitol Hill late last week excited about the prospects for sweeping legislation which would deliver tax cuts and tax reform, as with approval of a House tax bill, the focus has shifted to the Senate, and whether GOP leaders can muster the needed votes to approve a slightly different GOP tax measure after Thanksgiving.

“This bill gives Americans more take home pay by cutting taxes and preserving deductions for home mortgage interest and charitable contributions,” said Sen. Bill Cassidy (R-LA) – while he’s on board, only a handful of GOP Senators are expected to determine the fate of this legislation.

Here’s where things stand on Capitol Hill:

1. Remember, there is more to do than tax reform. Yes, Republicans want to get tax reform done by the end of the year. But there are other measures which will need attention as well after the Thanksgiving break. For example, the Children’s Health Insurance program needs to be reauthorized, and has been in limbo since October 1. A temporary federal budget runs out on December 8, and there still hasn’t been a deal announced on how much Congress will decide to spend on the discretionary budget, which is what funds pretty much everything outside of mandatory spending items like Social Security and Medicare. There had been talk earlier this year of a possible government shutdown showdown, but that seems unlikely right now, because it would really get in the way of GOP efforts on tax reform. House Speaker Paul Ryan still wants all that spending work – a giant omnibus funding bill – done by the end of the year.

2. A rush of spending seems likely. In order to get a deal on the discretionary budget for 2018, it’s expected there will be a sizeable increase in defense spending in any final spending deal for next year – President Trump had asked for $54 billion in extra military funding, but there’s no sign of any budget cuts to immediately offset the cost of that. Not only is that extra money likely to be approved, but a third hurricane disaster relief bill seems likely to be voted on by Congress in December as well. The latest White House request was for $44 billion, much less than what Texas, Florida and Puerto Rico have asked for in terms of hurricane aid. That would make total aid close to $100 billion just this year. In the latest disaster aid plan, the White House for the first time is seeking offsetting budget cuts to pay for some of that extra spending. The plan unveiled last Friday has $14 billion in cuts now, and another $44 billion in cuts later – later, as in between 2025 and 2027, after President Trump is gone from the Oval Office.

3. Some Senators to watch on tax reform. When lawmakers return to legislative sessions the week of November 27, the main political game on Capitol Hill will be figuring out where everyone stands on the GOP tax reform bill in the Senate. This is a similar scenario to what went on with Republicans on health care reform, and many of the same players are involved. On the bubble right now would be Sen. Susan Collins (R-ME), Sen. John McCain (R-AZ), Sen. Bob Corker (R-TN), Sen. Lisa Murkowski (R-AK), and Sen. Jeff Flake (R-AZ). Also, Sen. Ron Johnson (R-WI) has said he wants major changes on how small businesses and pass through businesses are dealt with. Don’t count the bill out yet, but there is a lot of work to do. And one thing is for sure – someone will be watching them very closely.

4. Some items you probably won’t see in 2017. One item that won’t be acted on this year is an infrastructure bill. President Donald Trump has talked about his grand $1 trillion infrastructure program since the 2016 campaign, but at this point, there is still no detailed plan, and there is no bill in the Congress. On immigration, there’s still lots of talk about wheeling and dealing on DACA and border security, but I’m not sure there’s the political will to do that. Don’t look for funding for the border wall, but instead for something that sounds like border security, but isn’t the wall. With tax reform dominating the agenda, don’t look for anything on DACA until 2018.

5. One issue that has disappeared – the deficit. It used to be that Republicans were all about reigning in spending, and cutting the size of government. Now that they have had control of the House, Senate and White House, they are poised to, to, to, do nothing in 2017 on that front. The budget doesn’t balance for at least ten years (if not more), there were no major spending cuts enacted by the Congress, there was no appetite for savings in mandatory spending programs, either. The cuts included in the President’s budget have pretty much been ignored by lawmakers, and it took the White House three disaster aid bills before any offsetting budget cuts were proposed. Meanwhile, the yearly federal deficit is trending back up, and with the disaster relief bills, and an increase in the federal budget caps, there will be more red ink in 2018. Only a few Republicans have stuck with their familiar call for budget discipline.

House Republicans voted for tax reform, but asked for changes in the bill as well

Published: Saturday, November 18, 2017 @ 9:07 AM

As the House voted along party lines on Thursday to approve a sweeping package of GOP tax reforms, one peculiar part of the floor debate came when a number of Republicans – who voted for the bill – took to the floor to request changes in the their party’s plan, as some highlighted unintended consequences, while others objected to the basics of the measure.

Known in parliamentary parlance as a “colloquy,” the scripted exchanges between lawmakers are often done to clarify the legislative intent of a bill, or in this case, to urge action in a specific way in House-Senate negotiations.

And for some Republicans in this week’s tax reform debate, it was clear they wanted some provisions altered.

Some requests were specific, like Rep. David McKinley (R-WV), who made the case for historic preservation tax credits, which were eradicated by the House GOP tax reform bill.

[youtube=http://www.youtube.com/watch?v=QLSCynnwYUc&w=640&h=390]

“Without the credit, projects that transform communities in all 50 states, from
West Virginia to Texas, to Wisconsin, simply will not happen,” McKinley said on the House floor, as he asked for Brady’s word that he would help reverse the decision.

That didn’t happen.

“I commit to working with him and continuing to work with him on this issue because I know the importance of it,” Brady responded, making sure not to guarantee anything in some of these floor exchanges.

For Rep. Carlos Curbelo (R-FL), a staunch advocate of the GOP bill, he asked the Chairman of the House Ways and Means to do more in terms of tax help for the people of Puerto Rico, whose island was devastated by Hurricane Maria.

“I look forward to working with you on ideas to best serve the people of this island,” said Rep. Kevin Brady (R-TX), who thanked fellow GOP lawmakers for their concerns, but made no promises.

For Rep. Andy Barr (R-KY), the issue was with a new excise tax from Republicans that would be levied on the endowments of private colleges and universities.

Barr said that would harm Berea College in his district, a ‘work college’ that uses its endowment money to pay the tuition of all students. It was noted in press stories back home.

“I was pleased to learn that the Senate version of the bill exempts schools with fewer than 500 tuition-paying students from the excise tax,” Barr said, urging Brady to accept that position in any House-Senate negotiation.

Brady said he would try.

“Mr. Speaker, we will work together for a mutually accepted solution to make sure we exempt work colleges to use their endowments to provide tuition-free education,” the panel chairman responded.

For Rep. Don Young (R-AK), the problem he brought to the House floor was under the heading of unintended consequences, as the GOP tax bill would subject native settlement trusts in Alaska to a higher rate of taxation.

“This would make it more difficult for Alaska Native Settlement Trusts to provide long-term benefits to Alaska Natives,” Young said on the House floor, asking Brady to include provisions of a bill to remedy that and more.

Unlike some of the other requests, Brady acknowledged that the GOP tax bill would “unintentionally” change the tax rate for the Alaskan settlements, agreeing to focus on this in conference as we finalize individual rate structures between the House and the Senate.”

Others weren’t so lucky to get a guarantee of action, as they pressed for changes in maybe the most controversial part of the GOP plan, which limits a deduction for state and local taxes.

“I am concerned about its impact on some of my constituents in Maryland who pay high state and local income taxes,” said Rep. Andy Harris (R-MD), the only Republican member of the House from that state, which would be one of the biggest losers on the SALT issue.

That subject also drew two California Republicans to make the same appeal to Brady later in the debate; Rep. Mimi Walters (R-CA) and Rep. Steve Knight (R-CA) echoed the concerns of Harris – all of them got a murky assurance of help.

“I am happy to commit to working with both of them to ensure we reach a positive outcome for their constituents and families as we reconcile our differences with the Senate,” Brady said, making no promises.

Other Republicans brought up education, and a provision in the GOP tax reform bill that would hinder colleges and universities from providing tax free tuition waivers and reimbursements, a matter that has drawn more and more attention in recent days.

Rep. Mike Turner (R-OH) – whose district includes Dayton University – and Rep. Rodney Davis (R-IL) – whose district includes the University of Illinois – both appealed to Brady to make a change.

“I believe that an unintended consequence of this bill would hinder middle class Americans pursuing a higher education degree in an attempt to better their lives,” Turner said.




“I am worried it is going to have an impact on the custodians and the assistants in the Registrar’s Office who are just working at these institutions to be able to send their son or daughter to college,” said Davis.

There was no guarantee that the provision would be changed.

“I have a keen interest in this issue,” Brady told Turner and Davis. “I will work with you toward a positive solution on tuition assistance in conference with the Senate.”

Democrats noted the exchanges on both days of the House tax reform debate, arguing that it showed off the haphazard nature of how the bill was put together.

“I also was intrigued by the colloquy where Members came to ask the leadership
if they will work with them to take out egregious elements of this tax proposal,” said Rep. Dan Kildee (D-MI).

“We get this sort of, “Yes, I will work with the gentleman,” answer,” Kildee added, raising his voice on the floor.

“Why did you put it in in the first place?” Kildee yelled. “Why are you cutting historic tax credits in the first place? Why did you put it in in the first place? You just wrote the bill. You just wrote it,” he said.

GOP lawmakers said this past week that anyone can find a reason to vote against a big bill like this tax reform plan – we’ll see in coming weeks whether these publicly voiced concerns become an issue for the final version of tax reform in the Congress.

Trump delays lifting ban on import of elephant trophies from Africa

Published: Friday, November 17, 2017 @ 8:37 PM
Updated: Friday, November 17, 2017 @ 8:37 PM



Cameron Spencer/Getty Images
(Cameron Spencer/Getty Images)

Update (Friday, November 17)

President Donald Trump said in a tweet Friday he’s delaying a new policy allowing the body parts of African elephants shot for sport to be imported until he can review “all conservation facts.”

The U.S. Fish and Wildlife Service said Thursday that it will allow the importation of body parts from African elephants shot for sport. The agency said encouraging wealthy big-game hunters to kill the threatened species would help raise money for conservation programs.

Animal rights advocates and environmental groups criticized the decision. On Friday, the Republican chairman of the House Foreign Affairs Committee urged the administration to reverse the policy, calling it the “wrong move at the wrong time.”

Trump said that the policy had been “under study for years.” He says he will review the issue with Interior Secretary Ryan Zinke.

Earlier

The Trump administration plans to lift a ban on Friday that barred big game hunters from bringing trophies from elephants killed in a pair of African nations to America, according to multiple reports.

>> Read more trending news

A spokesperson for the U.S. Fish and Wildlife Service told ABC News in a statement Wednesday that the decision was made after officials in Zimbabwe and Zambia provided them with information to support a reversal of the ban.

"Legal, well-regulated sport hunting as part of a sound management program can benefit the conservation of certain species by providing incentives to local communities to conserve the species and by putting much-needed revenue back into conservation," the spokesperson told ABC News.

The decision will overturn a 2014 ban implemented by President Barack Obama’s administration in response to falling elephant populations. 

African elephants are listed as threatened under the Endangered Species Act. A provision in the act, however, allows for the government to give permits that let people import trophies from such animals if evidence shows that hunting them helps conservation efforts, according to NBC News.

The rule reversal will apply to elephants hunted in Zimbabwe from Jan. 21, 2016, to Dec. 31, 2018, the news station reported. It will also apply to elephants killed in Zambia in 2016, 2017 and 2018 and “applications that meet all other applicable permitting requirements,” a Fish and Wildlife spokesperson told NBC News.

According to the 2016 Great Elephant Census, Savanna elephant populations fell by 30 percent between 2007 and 2014. About 352,000 elephants were spotted during the survey, 82,300 in Zimbabwe and 21,700 in Zambia.

Both countries had areas that saw substantial declines in elephant populations along the Zambezi river in Zambia and in Zimbabwe’s Sebungwe region, according to the census.

The Associated Press contributed to this report.

Hatch to Sherrod Brown: ‘Don’t spew this stuff at me’

Published: Friday, November 17, 2017 @ 10:26 AM

Sen. Hatch Shouting Down Sen. Sherrod Brown on Tax Bill. Video courtesy of CNN

Sen. Sherrod Brown and Senate Finance Committee Chairman Orrin Hatch are garnering attention today for a yelling match they had last night at a hearing over the tax reform bill working its way through the Senate.

Hatch, a Utah Republican, took umbrage at comments by Brown saying the tax bill will help the rich at the expense of the poor.

“This tax cut is really not for the middle class,” Brown said. “It’s for the rich.”

Calling it “a nice political play,” Hatch told Brown “I’ve been here working my whole stinking career for people who don’t have a chance, and I really resent anybody saying that I’m just doing this for the rich.”

Brown, an Ohio Democrat, meanwhile, shot back that the public believes that the bill primarily benefits the wealthy. “I get sick and tired of the richest people in the country getting richer and richer,” he said over shouts calling for regular order. “We do a tax cut for the rich and the middle class loses.”

Hatch said that he came from the lower-middle class. “We didn’t have anything,” he said. “So don’t spew this stuff at me. I get a little tired of that crap.”

“I like you personally very much but I’m telling you, this bullcrap you throw out really gets old after awhile,” he said.

The fight came during the final day of the Senate Finance Committee debate over the tax overhaul bill. The committee later approved the bill on a party line vote 14-12.