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4 - Taxing Rewards

Parent Dependency and American Tax Policy

Published online by Cambridge University Press:  07 October 2023

Susan Stein-Roggenbuck
Affiliation:
Michigan State University
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Summary

Federal tax policy offered dependency tax expenditures to taxpayers who helped support their aging parents. This chapter analyzes the 1966 Congressional hearing investigating the adequacy of these federal tax incentives. The hearings occurred during a period of tax reform focused on reducing the number of tax expenditures available through the tax code. The parent’s dependency was not presumed but had to be documented, often resulting in intrusive IRS audits and limited access to benefits. Drawing on letters sent to the committee, this chapter analyzes the voices of adult children and the parents they supported. Their correspondence underscores the hardship that parental support exacted on adult children and their priorities regarding tax benefits for supporting parents. These letters also show the limited options available to parents in need. Relatively minor changes resulted from the hearings, but they illuminate how ideas of dependency and family operated in tax benefits.

Type
Chapter
Information
Caring for Mom and Dad
Parent Dependency and American Social Policy
, pp. 156 - 188
Publisher: Cambridge University Press
Print publication year: 2023

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  • Taxing Rewards
  • Susan Stein-Roggenbuck, Michigan State University
  • Book: Caring for Mom and Dad
  • Online publication: 07 October 2023
  • Chapter DOI: https://doi.org/10.1017/9781009203272.006
Available formats
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  • Taxing Rewards
  • Susan Stein-Roggenbuck, Michigan State University
  • Book: Caring for Mom and Dad
  • Online publication: 07 October 2023
  • Chapter DOI: https://doi.org/10.1017/9781009203272.006
Available formats
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Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Taxing Rewards
  • Susan Stein-Roggenbuck, Michigan State University
  • Book: Caring for Mom and Dad
  • Online publication: 07 October 2023
  • Chapter DOI: https://doi.org/10.1017/9781009203272.006
Available formats
×