Media Contact: Allie Wright, [email protected], (202) 794-1823
Proposed plan fails to expand the Child and Dependent Care Tax Credit
Washington, D.C. (November 2, 2017) – The tax reform plan introduced on Capitol Hill today fails to increase the Child and Dependent Care Tax Credit (CDCTC) or make it refundable, thereby failing to live up to the President’s campaign promise to help low-income families better afford the enormous cost of high-quality child care.
“Save the Children Action Network (SCAN) and our early education advocates are disappointed that this plan does nothing new to help kids get a strong start in life through access to high-quality child care and early education programs,” said SCAN President Mark Shriver. “Child care is a work-related expense, and if Congress is serious about helping working families, we urge lawmakers to expand the credit and make it refundable.”
The CDCTC is a dedicated tax credit that helps families offset the costs of high-quality child care and early education programs. SCAN supports the expansion of the CDCTC, as well as efforts to make it refundable. Despite calls by some to eliminate the Child and Dependent Care Tax Credit, today’s proposal would simply retain it and instead marginally expand the Child Tax Credit, which can be claimed by any parent and used for any expense.
“Financial relief for working families is only half the battle,” Shriver continued. “Tax reform is a unique opportunity for Congress to ensure equal opportunity for all children by adopting the Promoting Affordable Childcare for Everyone (PACE) Act, which will help more middle class and lower-income families afford high-quality child care and early childhood education.”
The PACE Act is bipartisan legislation that makes the child care tax credit refundable, increases the credit’s value, and indexes it to inflation. SCAN enthusiastically supports the PACE Act, which is sponsored by Rep. Kevin Yoder (R-KS) and Rep. Stephanie Murphy (D-FL) in the House, as well as Senator Richard Burr (R-NC) and Senator Angus King (I-ME) in the Senate.
“We stand ready to work with our allies in Congress to expand and enhance the child care tax credit in the tax reform bill,” Shriver said. “We will work to ensure the White House upholds President Trump’s campaign promise to deliver meaningful tax relief for child care costs.”
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.