Strengthening Child Care Tax Incentives to Support Working Families
Child care is not a luxury for American families—it’s a necessity. Yet the costs associated with quality child care are rapidly out-pacing most other expenses faced by families, including the cost of higher education.
The U.S. has traditionally used the tax code to help address real world problems, and to incentivize behaviors that result in overall economic benefits for Americans. For example, the tax code incentivizes people to save for retirement, encourages homeownership and assists with college education through deductions and exclusions. In the same way tax credits are used to make retirement and higher education more accessible, the tax code should also reflect that child care expenses are often directly linked to a parent’s ability to work. Strengthening the Child and Dependent Care Tax Credit (CDCTC) will help working families who are struggling with the rising cost of quality child care, benefiting the workforce of today – and tomorrow.