Why are you able to write off children (dependents) on your taxes?

Question

It seems to me that whether you have children or not should not factor into how much you pay in taxes. If anything, you should pay more since your children (dependents) go to (usually) public schools paid for by taxes. I know somebody will say that somebody getting a tax break doesn't affect anybody else but it does since someone has to pay the taxes that they didn't pay.

Answer 1

For each dependent, your exemption increases by $3500.

For each child under 16 you get child tax credit of $1000.

Also your Earned Income Credit increases.

For articles on your U.S. tax return, http://taxipay.blogspot.com/2008/04/list...

Answer 2

While they may get a tax break, you get a far LARGER spendable income break by not having children or supporting an elderly parent. The cost of raising a child is many times larger than the rather modest tax breaks that parents get.  And be "generating" new taxpayers they will ultimately pay a lot MORE in taxes than your empty lineage will so YOU are the one who is draining the coffers far more than they are.

Parents who send their children to PRIVATE schools do pay a lot more.  But since a free publicly funded education is guaranteed by law in this country, everyone pays in to the system.  And just because you don't have children doesn't mean that you don't get any benefit -- imagine how life would be with hordes of un-educated goons running the streets.  Or worse, un-educated cops with guns.

Answer 3

The IRS allows parents a minimal credit for each child in their home during the tax year due to the EXPENSES incurred to care for their children.  Do NOT get the impression that the taxes parents pay aren't part of what goes into the school systems.  They DO.

According to http://moneycentral.msn.com/articles/fam... the average annual cost of raising a child for a dual parent family, child age 0-2, totals $6,490.00 (and that is PER child.)  And parent's pay TAXES on much of the items purchased to care for their kids.  Thus the allowance to provide the parents with some relief.

You don't realize it, but think about the "tax break" you get for vehicle registration.  It's no different - just on a smaller scale.

Answer 4

The tax code attempts to 1) generate revenues for government to operate and 2) redistribute income to those perceived to be more in need than others and 3) base taxes on wherewithall to pay.  The code preceives that people with dependents have a lot of expenses to incur to support these dependents.  Additionally, when all those expenses are subtracted from the person's pre-tax income, the more dependents, the less that person has to pay taxes (less wherewithall).  Now, maybe those dependents are children, but they are often enough an elderly parent or relative.  That means a dependent doesn't necessarily create an additional student.  Take this all together, and the code attempts to be more fair to those in more need, and less fair to those in less need.  It isn't a perfect system, but if I was to complain, I would complain that wealthier individuals receive too many tax breaks.  There are too many people on the planet, so maybe people should be restricted to two kids, or pay a kid tax.  Maybe that would be more to your liking, but the above is why it is not that way now.