Washington, D.C. – U.S. Senator Catherine Cortez Masto (D-Nev.) today joined Senators Bob Casey (D-Penn.), Patty Murray (D-Wash.) and Ron Wyden (D-Ore.) in introducing a bill to expand the Child and Dependent Care Tax Credit to help families pay for the costs of child care. The Child and Dependent Care Tax Credit Act would also help increase employment rates and earnings of parents, as well as reduce child poverty.
“The coronavirus pandemic has reminded us of how critical affordable child care is to children’s well-being, families’ finances, and women’s careers. I’m glad to cosponsor this bill to expand tax credits for families with children in care, and I will continue working so that Nevada’s working families and their children can thrive, both now and as the economy recovers.”
According to the National Women’s Law Center, low income families spend almost one-third of their income on child care. A robust and fully refundable Child and Dependent Care Tax Credit will support working parents, reduce child poverty and could increase net employment by more than 500,000 jobs, according to analysis from the National Academies of Sciences.
The COVID-19 pandemic has further illustrated the critical need to help families obtain quality and affordable child care. The Census Bureau and the Federal Reserve found COVID-19 has disrupted child care arrangements for millions of parents; one in five working-age adults cited child care as a reason they were not working, with disproportional impacts falling on women. Access to safe, affordable child care is essential to our economic infrastructure and our naion’s economic recovery.
The Child Care and Dependent Credit Enhancement Act would:
- Make the full Child and Dependent Care Tax Credit available to most families, including working families with income under $125,000. The current phase-down of the credit begins at $15,000 of income;
- Put more money into a family’s pocket. The bill increases the maximum credit from $1,050 to $4,000 per child (age 0-13), up to $8,000;
- Ensure lower income families see a benefit. The bill would make the credit fully refundable to make sure those with the greatest need are supported.
- Retain value over time. The bill would index benefits to inflation to ensure they keep up with ever-growing costs; and
- Phase out fully for incomes above $440,000 a year.