On September 23, President Clinton vetoed the Taxpayer Refund and Relief Act of 1999—a $792 billion tax cut, spread over 10 years. Included in the act were several pro-family provisions supported by Home School Legal Defense Association. However, since Congress is revamping the legislation to make it more acceptable to the president, we are unsure whether the following provisions will remain in the final version:
Education Savings Accounts
Under Senator Paul Coverdell’s (R-GA) proposal, parents, employers, and others could collectively deposit up to $2,000 per child annually of after-tax income into interest-bearing savings accounts.
That interest would be tax free if used for K–12 educational expenses.
Stay-at-Home Moms Tax Credit
Senator Judd Gregg’s (R-NH) plan would give low-income families up to $960 tax credit per child under one year old. Higher income families would get a smaller percentage.
Marriage Penalty Phase Out
Under our present tax code, over 21 million married couples are taxed about $1,400 more per year than unmarried cohabiting couples. Parts of this “marriage penalty” would have been phased out over five years.
