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Opinion | The Working Families Tax Cuts are delivering relief for Michigan parents
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Parents know that raising a child is one of the most rewarding responsibilities anyone can undertake. But if you spend time with working parents today you will likely hear two leading concerns — the cost to provide for a family and the time it takes to manage both work and home obligations.
My wife and I are raising four kids of our own right here in mid-Michigan, so we spend a lot of time with other parents hearing about their concerns for the future. And while I can’t fix the fact that life feels like it gets busier every year (like a Saturday morning with three kids playing basketball games in three different cities at exactly the same time), I am proud of the work we have done to make things a little more affordable for families.
Last summer I fought hard in Congress to deliver much-needed relief for Michigan families through the historic Working Families Tax Cuts Act. This legislation was written with families in mind and prevented the largest tax hike in American history by locking in lower tax rates for working-class and middle-class taxpayers. It also provides new tax cuts for workers by removing tax on tips and overtime, and it will help more families afford a new, American-made car — like the ones assembled in Lansing and Delta Township — by letting them deduct auto loan interest on their taxes.
That’s only the beginning. The Working Families Tax Cuts also delivered targeted relief to parents to help make raising children more affordable. The Child Tax Credit reflects the priorities of our nation and recognizes the value that children and strong families bring to our future. We permanently raised this credit to $2,200 per child and ensured it will increase in future years to keep up with inflation. The best part? Parents are already getting that relief starting with their tax returns this spring.
I also know that many parents are juggling work while also raising their kids, so the Working Families Tax Cuts lowered the cost of child care by allowing them to deduct a larger portion of day care and babysitting expenses for children under 13. The increase, which will launch in the 2027 tax filing season, will allow working parents with two kids to save as much as $3,000, with lower-income families saving the most. We also expanded a tax deduction to incentivize employers to offer child care options to retain employees, allowing multiple businesses to pool resources together to offer this benefit.
Adopting children is one of the most selfless decisions a couple can make, and the process has sadly become too expensive for too many loving families, often exceeding $25,000 in associated costs. We wanted to fix that, so we expanded the Adoption Tax Credit to over $17,000 so that more working- and middle-class families can afford to provide a loving home and a better future for a child. This is both a financial and moral commitment from our country.
I’m sure you have heard the worn out, surface-deep attacks against our reforms that suggest the wealthiest and the billionaires are getting tax cuts from this reform. But the results speak for themselves. After these tax reforms took effect, a family of four in America that earns up to $73,000 owes no federal income tax. Meanwhile the share of federal income taxes paid by the top 1% increased to higher than before these Working Family Tax Cuts were passed, now making up over 40% of the taxes collected this year. That’s not tax cuts for billionaires; it’s results for working families.
Raising a family is expensive, but the Working Families Tax Cuts are helping lower costs for Michigan parents, from the essentials like groceries and diapers to child care and more. I was proud to deliver this relief for hardworking Michiganders and will continue to fight for working parents. In the meantime, someone needs to figure out how to be in three cities at once during basketball season.
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