A debate erupted this morning about adult children out of work living at home with parents. First of all, I am convinced that one of the most important facets of the traditional family is the safety net feature. Not all kids progress in to careers at the same pace. They may need help from the family. That is a rational hope and expectation to the extent the family can provide it.
In the recently passed health care reform, insurance companies must provide coverage for dependent children up to age 26. A rational idea since the economy does not allow as many smooth transitions from education to self sufficiency as it once did. A further benefit for students who deliberately consider and try multiple options before settling on their true commitment.
However, the age 26 option carries with it a built in problem. In the IRS code, families filing a 1040 return get to claim an exemption for dependent children in one part of the tax return and a tax credit for dependent children in another part of the same return. How long before astute politicians seize on this anomaly between health reform and tax returns. Changing the tax regulations so the dependent age agrees with the 26 year old insurance reform age would reduce tax revenues.
So reform giveth and reform taketh away. In a time when burgeoning deficits threaten economic recovery, can we afford agreement between the two portions of federal law mentioned above?
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