[Sacramento, CA]  Child welfare advocates and parents express outrage today as a policy change at the Internal Revenue Service allows them to view dependent children as assets... assets that can be taxed and, if necessary, seized.

"It's been in the works for a while now," said Certified Public Accountant (CPA) and tax specialist Lyle Young of the Sacramento firm Hollis, Young, & Belden.  "They're targeting families whose primary source of income is state welfare or other financial assistance acquired through their children."

"It makes sense, really.  This is how some of these folks make a living." said Young.

Others, like Nancy Henderson, a Washington, D.C., social services lobbyist, see it differently.

"This is an assault on the family, an assault on the poor, and an assault on the American way of life," said  Henderson.  "Our children are not objects or property to be taxed."

Slated for 2008 implementation, the new policy requires parents to file Form 8290BS, listing dependent children living within the household.  The form registers name, age, gender, and a basic descriptions of the asset. 

New tax schedules, based upon the per child entitlement one would expect from state or county social services, will help taxpayers figure the amount they need to pay.  Families in which the lion's share of income is derived from "gainful employment of an adult" are exempted from the tax, but must still fill out and submit the form. 

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Having Your Child Appraised

Future plans include a possible "physical appraisal" to determine the actual net worth of a given child.  As of 2015, all state, county, and local aid agencies will then be required to use this "appraised value" as a basis for determining that child's entitlement.

"They're talking about sending asset appraisers with the 2010 census." Young said.  "I don't know if that will happen or not, but it could have a chilling effect on the accuracy of the census.  In my opinion, it should be a separate deal.  But the feds will do what they'll do."

The good news for parents, says Young, is that as children approach their teen years, they begin to depreciate.  Depreciation is more rapid if, in his words, "the child is not particularly attractive or bright."  By the age of 17, he says, the tax rate is reduced to zero.

Asked under what circumstances a child might be seized, Young replied, "As I understand it, that would be a last resort.  Most times, the IRS will work with the taxpayer on an outstanding debt.  Unless you absolutely refuse to pay the tax on them, or can't come up with the money over an extended period of time, I can't see it happening."

Henderson, along with a coalition of lobbyists, concerned parents, and liquor store owners, have hired an army of attorneys across the country to fight this new directive in court.

"This has to be unconstitutional.  It just has to be."  Henderson said.  "The existing welfare system has been working for generations.  Families have built their way of life around these programs.  The federal government cannot simply interrupt the family dynamic like this."

"This will create a society in which only the very wealthy can have children.  None of it makes any sense."

"Look, they're giving you a choice," says Young.  "Either get a job, or declare your little moneymakers as assets.  It's not that difficult to grasp."

He chuckled, "If you want to reduce the amount a bit, you could always stick to having stupid, ugly kids."