July 7, 2003
Dear Senator/Representative:
Child support and its enforcement is a complex part of each state’s family law. It is frequently the subject of federal and state legislation. However, the payment or non-payment of child support has never been made a taxable event for a number of good reasons. Currently, efforts are underway in Congress to allow Custodial Parents to “write off” unpaid child support as a “bad debt” on federal income tax returns and to allow Non-Custodial Parents to pay taxes on the amount of child support written-off by the Custodial Parent.
I urge you not to make child support a taxable event. The attached position paper, endorsed by the National Council of Child Support Directors, outlines the dangers and unintended harmful consequences with this proposal that would make child support a tax issue. Such legislation would:
•Reward delinquent parents with financial incentives for not paying child support •Reduce the amount of child support paid to children •Create a gain in federal revenue at the expense of children •Reverse existing federal tax law regarding child support •Conflict with state family law •Place a huge economic burden on child support enforcement programs and taxpayers
The National Council of Child Support Directors urges you to protect child support for our nation’s children by defeating efforts to make child support a taxable event.
Sincerely,
Diane M. Fray
President, NCCSD
Sent to:
Senate House
Max Baucus Benjamin Cardin
Barbara Boxer Christopher Cox
Chuck Grassley Wally Herger
Orrin Hatch William Thomas
Olympia Snowe
Organizations:
APHSA NCSL
CLASP NWLC
ERICSA OCSE
NCSC WICSEC
NCSEA