On September 5, the House Ways and Means Committee approved, 22-14, a bill (H.R. 5193) that would provide tax deductions for low-income families for elementary and secondary school expenses. Reps. Nancy Johnson (R-CT) and Mac Collins (R-GA) were the only Republicans on the committee to vote against the bill. Rep. Earl Pomeroy (D-ND) was the only Democrat to cross party lines in support of the measure.
Sponsored by Rep. Bob Schaffer (R-CO), the Back to School Relief Act would expand the tax deduction for higher education expenses included in last year’s tax law (P.L. 107-16) to include elementary and secondary school expenses. From 2003 through 2005, the bill would allow taxpayers to claim a deduction of up to $3,000 for qualified K-12 expenses. Individuals with incomes up to $20,000 and couples with incomes up to $40,000 would qualify for the deduction.
The deduction in the bill would be “above the line,” which means that taxpayers would not be required to itemize their expenses. Qualified expenses would include tuition, fees, tutoring, services for special needs students, books, and any supplies or equipment needed for attendance at a public, private, religious, or home school.
According to the Joint Committee on Taxation, the bill would cost $4.9 million.
Committee Chair Bill Thomas (R-CA) said that the bill “is targeted to low-income families,” and that “it would help defray the costs of tuition at private and religious schools.” He added, “It would also help defray the costs of academic tutoring, equipment, transportation, or other supplies for children attending public schools.”
Ranking Member Rep. Charles Rangel (D-NY) complained that the bill had not been considered previously by the committee and “never had hearings.” He questioned the budget implications of the measure, and noted that taxpayers do not have to itemize their expenses. He asked if the bill would allow parents to buy a state-of-the-art television set and claim it as a tax deduction because they need it for their child’s computer system. “I want a flat screen,” he said. “And high definition television. Is that deductible, too?” he asked. “This bill is more political than sound tax policy,” he charged.
Rep. Johnson introduced and withdrew an amendment that Rep. Thomas had ruled was nongermane to the bill. The amendment would have provided federal assistance for the construction and modernization of schools in small towns across the nation.
Rep. Rangel noted that he was a cosponsor of the amendment and said that he would like to introduce the amendment himself. “The question of germaneness should be waived,” he said.
“The specific bill before us deals with individuals, and the amendment deals with corporations,” clarified Rep. Thomas. “To go down that road is chaos,” he added, and once again ruled the amendment nongermane to the bill.
“I move that the question of germaneness be waived,” responded Rep. Rangel.
“The motion on the question of nongermaneness is nongermane,” ruled Rep. Thomas.
The committee rejected, 23-12, the appeal by Rep. Rangel on the ruling by Rep. Thomas.
