[Congressional Record Volume 153, Number 106 (Thursday, June 28, 2007)]
[Senate]
[Pages S8696-S8698]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. COLLINS (for herself, Mr. Warner, Mr. Chambliss, Ms. 
        Snowe, Mr. Isakson, Mr. Lugar, Mr. Cornyn, Mr. Coleman, and Mr. 
        Voinovich):
  S. 1727. A bill to amend the Internal Revenue Code of 1986 to provide 
for a credit against income tax for certain educator expenses, and for 
other purposes; to the Committee on Finance.
  Ms. COLLINS. Mr. President, I rise today, along with my good friends, 
Senators Warner, Chambliss, Snowe, Isakson, Lugar, Cornyn, Coleman, and 
Voinovich, to introduce the Teacher Tax Credit Act of 2007.
  As we approach the end of the school year, it is appropriate once 
again to consider tax relief to help cover the out-of-pocket expenses 
our Nation's teachers incur to improve the education of our children.
  Many times in the past, we have come to the floor to offer 
legislation on this subject. In 2001, Senator Warner and I offered 
legislation which resulted in the enactment of the existing $250 
teacher tax deduction. That deduction expires at the end of this year. 
Earlier this session, Senator Warner and I offered legislation to make 
that deduction permanent, raise it to $400, and expand it to cover 
professional development expenses.
  Today, we introduce legislation that would provide teachers with an 
alternative tax credit for books, supplies, and equipment they purchase 
for their students, as well as for professional development expenses. 
The tax credit would be set at 50 percent of such expenditures so that 
teachers would receive 50 cents of tax relief for every dollar of their 
own money they spend, up to $300.
  Our rationale in proposing a tax credit as an alternative to the 
existing deduction is simple, deductions only reduce tax liability 
indirectly, by reducing taxable income. The value of the deduction is 
equal to the taxpayer's marginal tax rate, or what we call their tax 
``bracket.'' For example, for teachers in the 25 percent tax bracket, a 
$100 deduction would reduce their tax liability by 25 percent, or $25.
  By contrast, the tax credit we are proposing would reduce the amount 
of taxes paid by a teacher by 50 percent for each dollar that a teacher 
spends on school supplies or professional development expenses, 
regardless of the tax bracket the teacher is in. A teacher who took the 
maximum credit amount of $300 would save 50 percent of that amount--
$150--in taxes.
  We have made an effort to ensure that the tax benefit we are 
proposing will make all teachers who use it better off, relative to the 
current deduction. Let me take a moment to explain how we have done 
this: first, the tax credit is structured as an alternative teachers 
can choose either the deduction or the credit, whichever works best for 
their tax situation. Second, the level of the credit, if adopted in its 
present form, would provide a net after-tax benefit of $150. This is 
significantly higher than the net after-tax benefit that most teachers 
can receive using the current $250 deduction.
  It is even higher than the net after-tax benefit that would result 
from the $400 deduction Senator Warner and I proposed earlier this 
year. Teachers in the 25 percent tax bracket would get a net after-tax 
benefit of $100 from a $400 deduction, so they will see an increase of 
$50 under the credit system that we are proposing today. Even teachers 
in the highest tax bracket, which is currently set at 35 percent, would 
see a small increase in the net benefit they would receive under this 
credit, compared to a $400 deduction.
  I should also note that some teachers make so little they do not even 
have the tax liability to offset this credit. To make sure these 
teachers are also compensated for the money they spend on classroom 
supplies and professional development, the credit Senator Warner and I 
are proposing is fully refundable.
  It is remarkable how much the average teacher spends every year out 
of

[[Page S8697]]

his or her own pocket to buy supplies and other materials for their 
students. Many of us are familiar with a survey of the National 
Education Association that found that teachers spend, on average, $443 
a year on classroom supplies. Other surveys show that they are spending 
even more than that.
  The NEA's data also shows that the average teacher in the U.S. still 
does not make $50,000, and in many States, including Maine, they 
average less than $40,000. When you realize that the average teacher is 
not particularly well paid, it speaks volumes about their dedication 
that they are willing to make that kind of investment to support the 
teaching they provide to their students.
  Indeed, I have spoken to dozens of teachers in my home State who tell 
me they routinely spend far in excess of the $300 credit limit on 
materials they use in their classrooms. At every school I visit, I find 
teachers who are spending their own money to improve the educational 
experiences of their students by supplementing classroom supplies. Year 
after year, these teachers spend hundreds of dollars on books, bulletin 
boards, computer software, crayons, construction paper, tissue paper, 
stamps and inkpads. For example, Anita Hopkins and Kathi Toothaker, 
elementary school teachers from Augusta, Maine, purchase books for 
their students to have as a classroom library as well as workbooks and 
sight cards. They also purchase special prizes for positive 
reinforcement for students. Mrs. Hopkins estimates that she spends $800 
to $1,000 of her own money on extra materials to make learning fun and 
to create a stimulating learning experience.
  It is important that this credit also be available to teachers who 
incur expenses for professional development. While this tax relief 
provides modest assistance to educators, it is my view that students 
are its ultimate beneficiaries. Studies consistently show that well-
qualified teachers, and involved parents, are the most important 
contributors to student success. Educators themselves understand just 
how important professional development is to their ability to make a 
positive impact in the classroom. Teachers in Maine repeatedly tell me 
that they need, and want, more professional development. But tight 
school budgets often make funds to support this development impossible 
to get. By providing a credit for professional development expenses, 
this amendment will help teachers take that additional course or pursue 
that advanced degree that will make them even better at what they love 
to do.
  Our bill makes it a priority to reimburse educators for just a small 
part of what they invest in our children's future. It is both sound 
education policy and sensible tax policy. I hope our colleagues will 
join us in support of this important initiative.
  I ask unanimous consent that a letter of support be printed in the 
Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                               National Education Association,

                                    Washington, DC, June 27, 2007.
     Senator Susan Collins,
     Senator John Warner,
     U.S. Senate,
     Washington, DC.
       Dear Senators Collins and Warner: On behalf of the National 
     Education Association's (NEA) 3.2 million members, we would 
     like to express our strong support for your proposal to 
     create a tax credit for educators' classroom supply and 
     professional development expenses. We thank you for your 
     continued leadership and advocacy on this important issue.
       As you know, educators across the country make considerable 
     financial sacrifices as they reach into their own pockets to 
     purchase classroom supplies. Studies show that teachers spend 
     more of their own funds each year to supply their classrooms, 
     including purchasing essential items such as pencils, glue, 
     scissors, and facial tissues. For example, NEA's 2003 report 
     Status of the American Public School Teacher, 2000-2001 found 
     that teachers spent an average of $443 a year on classroom 
     supplies. More recently, the National School Supply and 
     Equipment Association found that in 2005-2006, educators 
     spent out of their own pockets an average of $826.00 for 
     supplies and an additional $926 for instructional materials, 
     for a total of $1,752.
       By creating a tax credit, your legislation would reduce the 
     amount of taxes paid by a teacher by 50 percent for each 
     dollar he or she spends on school supplies. Thus, a teacher 
     taking the maximum credit of $300 would save $150 in taxes, 
     regardless of his or her tax bracket. As a result, your bill 
     will make a real difference for many educators, who often 
     must sacrifice other personal needs in order to pay for 
     classroom supplies.
       NEA also strongly supports your proposal to cover out-of-
     pocket professional development expenses under the tax 
     credit. Teacher quality is the single most critical factor in 
     maximizing student achievement. Ongoing professional 
     development is essential to ensure that educators stay up-to-
     date on the skills and knowledge necessary to prepare 
     students for the challenges of the 21st century. Your bill 
     will make a critical difference in helping educators access 
     quality training.
       We thank you again for your work on this important 
     legislation and look forward to continuing to work with you 
     to support our nation's educators.
           Sincerely,
     Diane Shust,
       Director of Government Relations.
     Randall Moody,
       Manager of Federal Advocacy.

  Mr. WARNER. Mr. President, I rise today in support, once again, of 
America's teachers by joining with Senator Collins in introducing the 
Teacher Tax Credit Act of 2007. Other original cosponsors of this bill 
include Senators Chambliss, Coleman, Cornyn, Isakson, Lugar, Snowe, and 
Voinovich.
  Senator Collins and I have worked closely for some time now in 
support of legislation to provide our teachers with tax relief in 
recognition of the many out-of-pocket expenses they incur as part of 
their profession. In the 107th Congress, we were successful in 
providing much needed tax relief for our Nations' teachers with passage 
of H.R. 3090, the Job Creation and Worker Assistance Act of 2002.
  This legislation, which was signed into law by President Bush, 
included the Collins/Warner Teacher Tax Relief Act of 2001 provisions 
that provided a $250 above-the-line deduction for educators who incur 
out-of-pocket expenses for supplies they bring into the classroom to 
better the education of their students. These important provisions 
provided almost half a billion dollars worth of tax relief to teachers 
all across America in 2002 and 2003.
  In the 108th Congress we were able to successfully extend the 
provisions of the Teacher Tax Relief Act for 2004 and 2005. In the 
109th Congress we were able to successfully extend the provisions for 
2006 and 2007.
  While these provisions will provide substantial relief to America's 
teachers, our work is not yet complete.
  It is now estimated that the average teacher spends $826 out of their 
own pocket each year on classroom materials--materials such as pens, 
pencils, and books. First-year teachers spend even more. Why do they do 
this? Simply because school budgets are not adequate to meet the costs 
of education. Our teachers dip into their own pocket to better the 
education of America's youth.
  Moreover, in addition to spending substantial money on classroom 
supplies, many teachers spend even more money out of their own pocket 
on professional development. Such expenses include tuition, fees, 
books, and supplies associated with courses that help our teachers 
become even better instructors.
  The fact is that these out-of-pocket costs place lasting financial 
burdens on our teachers. This is one reason our teachers are leaving 
the profession. Little wonder that our country is in the midst of a 
teacher shortage.
  Accordingly, Senator Collins and I have joined together to take 
another step forward by introducing legislation today that creates a 
refundable tax credit for teachers. The Teacher Tax Credit Act of 2007 
will simply provide a refundable tax credit up to $150 for classroom 
expenses and professional development expenses.
  I ask unanimous consent to have printed in the Record at the end of 
my statement the attached letter from the National Education 
Association endorsing the Collins-Warner Teacher Tax Credit Act of 
2007. I will also ask unanimous consent to have printed in the Record 
at the end of my statement the attached letter from the Virginia 
Education Association endorsing the Collins-Warner Teacher Tax Credit 
Act of 2007.
  Mr. President, our teachers have made a personal commitment to 
educate the next generation and to strengthen America. In my view, the 
Federal Government should recognize

[[Page S8698]]

the many sacrifices our teachers make in their career.
  In addition to the refundable tax credit legislation that we are 
introducing today, earlier this year Senator Collins and I introduced 
S. 505, The Teacher Tax Relief Act of 2007. S. 505 will build upon 
current law by increasing the above-the-line deduction, as President 
Bush has called for, from $250 allowed under current law to $400; 
allowing educators to include professional development costs within 
that $400 deduction; and making the teacher tax relief provisions in 
the law permanent.
  The Teacher Tax Credit Act of 2007 is another step forward in 
providing our educators with the recognition they deserve.
  Mr. President, I ask unanimous consent that the letters to which I 
referred be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                               National Education Association,

                                     Washington, DC, June 27, 2007
     Senator Susan Collins,
     Senator John Warner,
     U.S. Senate,
     Washington, DC.
       Dear Senators Collins and Warner: On behalf of the National 
     Education Association's (NEA) 3.2 million members, we would 
     like to express our strong support for your proposal to 
     create a tax credit for educators' classroom supply and 
     professional development expenses. We thank you for your 
     continued leadership and advocacy on this important issue.
       As you know, educators across the country make considerable 
     financial sacrifices as they reach into their own pockets to 
     purchase classroom supplies. Studies show that teachers spend 
     more of their own funds each year to supply their classrooms, 
     including purchasing essential items such as pencils, glue, 
     scissors, and facial tissues. For example, NEA's 2003 report 
     Status of the American Public School Teacher, 2000-2001 found 
     that teachers spent an average of $443 a year on classroom 
     supplies. More recently, the National School Supply and 
     Equipment Association found that in 2005-2006, educators 
     spent out of their own pockets an average of $826.00 for 
     supplies and an additional $926 for instructional materials, 
     for a total of $1,752.
       By creating a tax credit, your legislation would reduce the 
     amount of taxes paid by a teacher by 50 percent for each 
     dollar he or she spends on school supplies. Thus, a teacher 
     taking the maximum credit of $300 would save $150 in taxes, 
     regardless of his or her tax bracket. As a result, your bill 
     will make a real difference for many educators, who often 
     must sacrifice other personal needs in order to pay for 
     classroom supplies.
       NEA also strongly supports your proposal to cover out-of-
     pocket professional development expenses under the tax 
     credit. Teacher quality is the single most critical factor in 
     maximizing student achievement. Ongoing professional 
     development is essential to ensure that educators stay up-to-
     date on the skills and knowledge necessary to prepare 
     students for the challenges of the 21st century. Your bill 
     will make a critical difference in helping educators access 
     quality training.
       We thank you again for your work on this important 
     legislation and look forward to continuing to work with you 
     to support our nation's educators.
           Sincerely,
     Diane Shust,
       Director of Government Relations.
     Randall Moody,
       Manager of Federal Advocacy.
                                  ____



                               Virginia Education Association,

                                      Richmond, VA, June 28, 2007.
     Senator John Warner,
     U.S. Senate,
     Washington, DC.
       Dear Senator Warner: On behalf of the members of the 
     Virginia Education Association, I am delighted and proud that 
     you are again proposing to create a tax credit for educators' 
     classroom supply and professional development expenses. 
     Virginia teachers and I appreciate your continued leadership 
     on this matter because it obviously affects Virginia 
     educators--and educators around the nation--directly in the 
     pocketbook.
       As I'm sure you are aware, the National Education 
     Association reported in a study entitled the Status of the 
     American Public School Teacher, 2000-2001 that teachers spent 
     an average of $443 a year on classroom supplies. Since that 
     time, the average spending for supplies and materials is 
     estimated to have increased to over $1,750 annually. Add to 
     that the out of pocket expense of professional development 
     and you realize the sacrifice and commitment of our nation's 
     teachers to a quality education for their classrooms and the 
     professional commitment they have for themselves.
       The bill you are sponsoring with Senator Collins recognizes 
     teachers' dedication and will make a significance difference 
     for many educators. Again, I thank you.
           Sincerely,

                                                Princess Moss,

                                                        President,
                                   Virginia Education Association.
                                 ______