Michigan Considers Extending Tax Benefits to Pregnant Women
The Michigan House Finance Committee is currently reviewing a proposed bill that could allow pregnant women to claim a fetus as a dependent for tax purposes. This measure would apply to those who are at least 10 weeks pregnant by the close of the tax year, pending medical verification.
State Representative Gina Johnsen (R-Lake Orion) is advocating for the bill, emphasizing its potential to alleviate financial burdens and encourage family growth. “Everything costs more to just survive, raise a family, take care of yourself. But even starting at pregnancy, the costs go up. And this bill is to recognize that that’s when the costs start, not just when a child is born,” Johnsen explained.
Under Michigan’s tax regulations, personal exemptions are annually revised. For the 2024 tax year, the exemption amounts to $5,600 per individual and dependent.
Despite the bill’s intentions, critics express doubts about its efficacy in providing adequate support to new families. Danielle Atkinson, founder of Mothering Justice, argues the proposal falls short of addressing the comprehensive costs of raising a child. “If this was in good faith, we would definitely be looking at the true cost of care, money that’s lost when you are out of work. And just overall what it takes to raise a child in this society,” Atkinson stated.
Atkinson estimates annual expenses for raising an infant can exceed $14,000, considering essentials such as childcare, food, and clothing. She also voiced concerns about potential implications the bill might have on abortion access discussions.
Georgia set a precedent in 2022 by implementing a similar tax exemption for fetuses, following the Supreme Court’s decision to overturn Roe v. Wade. That legislation was linked to Georgia’s fetal heartbeat law.
Johnsen noted her proposal is inspired by the federal WIC program, which supports low-income pregnant women, nursing mothers, and families with young children. “I just want the moms to have an opportunity to have some assistance here and recognize that this is financially more difficult than not having a baby,” she remarked.
Atkinson, however, suggests that investing in existing initiatives such as Rx Kids, which provides financial support to mothers of newborns, might be more effective. “We have to think in the totality of when we’re talking about moms and families and babies, what does the most good and we need to put our attention and our resources behind those initiatives,” she emphasized.
The bill is progressing through the state legislature amidst broader Republican efforts to implement income tax cuts, allocate funds for infrastructure, and decrease budget expenditure. Democratic opposition warns these policies could endanger public services and social safety nets, although Senate Democrats back a “working parents tax credit.”
Johnsen defended her initiative, advocating for budget reductions to prioritize vulnerable groups. “We say we’re looking out for the most vulnerable. Well, the most vulnerability are the babies and the pregnant moms and the elderly and the veterans. They have to come first. Or we don’t have a thriving and strong society,” she asserted. The Michigan House of Representatives is anticipated to vote on the bill in the coming weeks.
—
Read More Michigan News
