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Approved plan does not expand the Child and Dependent Care Tax Credit, massively increases deficit
Washington, D.C. (December 20, 2017) – The tax reform legislation passed by the U.S. Senate on Tuesday and House of Representatives today fails kids and working families while giving huge tax breaks to the wealthy, said Save the Children Action Network (SCAN) President Mark Shriver.
The bill does not expand or enhance the Child and Dependent Care Tax Credit (CDCTC), the only dedicated tax credit that helps families afford the high cost of quality child care and early education programs. Instead, it increases the Child Tax Credit, a cash credit not required to be used for early education or child care expenses.
“In passing this bill, Congress sent a message that the needs of working families are not their priority,” said Shriver. “Congress missed a generational opportunity to help low- and middle-income families afford high-quality child care. Along with early childhood education, child care helps prepare kids for kindergarten and success later in life while also strengthening our nation’s workforce and economy as a whole.”
Further, because the plan causes a huge increase in the deficit estimated at more than $1 trillion, it will likely result in future cuts to programs for children in the U.S., including Head Start and other early learning programs.
Shriver said he appreciated Senator Marco Rubio’s last-minute efforts to increase the Child Tax Credit, but the changes to the bill are too little, too late.
“The changes are not nearly enough to actually help working families afford the rising cost of child care,” said Shriver. “Yet again, Congress put special interests first and left kids behind.”
Save the Children Action Network is the political voice for kids. We believe that every child deserves the best start in life. That’s why we’re building bipartisan will and voter support to make sure every child in the U.S. has access to high-quality early learning and that no mother or child around the globe dies from a preventable disease or illness. By investing in kids and holding leaders accountable, we are helping kids from birth to age five survive and thrive. Follow us on Twitter and Facebook