How much is your child worth? U.S. Sen. Kyrsten Sinema, D-Arizona, feels like $5,000 might be right.
Sinema has proposed providing new parents $5,000 with the birth of a child. This would not be a free handout, she said, but a loan that would be repayable over 10 years to the U.S. Treasury.
The proposal, which Sinema is working on with Senator Bill Cassidy, R-Louisiana, would come in the form of tax credits. If a new parent wanted to take advantage of the opportunity, they would take a $5,000 tax credit with the IRS on their first tax filing after the birth. Families who take advantage of the proposed credit would repay the loan by $500 a year over 10 years.
This “sliding scale” would allow new families to still receive some tax breaks while also “repaying” the initial larger credit.
"My family struggled. We had hard times growing up, and for my mom, it was tough to take care of us kids for a bit after my parents got divorced," she said, according to the Arizona Republic. "I know how hard it is for everyday families. ... The idea behind this legislation is to ease that burden so they have funds available in that first year."
The current child tax credit is $2,000.
Sinema says her proposal can benefit working families without taking away from existing tax plans or creating new tiers of a social entitlement program.