Legislation: Profamily Activists Push for a Higher Tax Exemption

Debate in Congress over tax simplification has engaged the energies of Washington-based groups that represent evangelical Christians. Spokesmen who advocate tax fairness for families have pressed members of the House of Representatives’ Ways and Means Committee to keep intact President Reagan’s proposed increase of the personal exemption to $2,000 for each individual.

That exemption now stands at $1,040, and members of the Ways and Means Committee agree that it should be raised. But in the face of record federal deficits, they are coming under pressure to compromise due to fears of a possible tax shortfall resulting from the Reagan administration plan. The House committee last month rejected the $2,000 personal exemption, but it considered a proposal to increase the standard deduction for taxpayers who do not itemize deductions. That proposal would provide the equivalent of the $2,000 break Reagan wants. For the 30 percent of taxpayers who do itemize deductions, the committee proposed an increase to $1,500 rather than $2,000. A committee staff member explained, “This shifts relief to the middle class and away from the rich.”

However, Gerald Regier, president of Family Research Council in Washington, sees it differently. “The plan fails to provide significant tax relief across the board,” he said in a statement directed to the Ways and Means Committee. “Instead, many families with children will continue to face a substantial ‘parents’ penalty.” Spokesmen for the Reagan administration plan have acknowledged that their tax reform proposal provides the greatest benefits for single parents.

Family Research Council joined 42 other organizations in signing a letter notifying Congress that “any change from a $2,000 personal exemption is unacceptable.” Leading conservative activists in those groups—who count themselves as stalwart Reagan supporters—said they would back no tax reform plan that did not include the full exemption promised by the President. They point out that if the exemption had kept pace with inflation through the years, it would now be worth about $3,500.

Among the groups endorsing the letter were Focus on the Family, the National Association of Evangelicals, Eagle Forum, two Christian school associations, Freedom Council, and numerous groups rallying under the “profamily” banner.

Connaught Marshner, head of National Pro-Family Coalition, the primary coalition of groups concerned with family issues, charged that the Ways and Means staff ignored letters and telephone calls it received from those supporting the $2,000 exemption. Much of the communication came as a result of James Dobson’s radio program, “Focus on the Family,” in which he interviewed Reagan and urged listeners to support the administration’s plan for tax relief. Committee staff members confirmed that they received about 100 letters each day for several days, but they did not tally the messages.

The Ways and Means Committee is concentrating on other areas of reform, including whether deductions for state and local taxes should be maintained and whether certain fringe benefits should be taxed. It is also debating whether tax reform should generate no extra revenue, or whether it should help reduce the federal deficit.

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