Access to high-quality child care and early education not only promotes a child’s development, but it also helps support parents who are struggling to balance work and family. Yet today, the average annual cost for a 4-year old in center-based care was higher than a year’s tuition and fees at a 4-year public college in many states. When Congress reconvenes, make sure they consider child care expenses in upcoming tax reform legislation.
Specifically, we want members of Congress to support the Promoting Affordable Childcare for Everyone (PACE) Act when they return in September, which has been introduced in the House and the Senate and would modernize the Child and Dependent Care Tax Credit and strengthen FSAs for working families.
According to an independent study, if this bill was enacted into law, a middle-class family of four making $55,000 a year could receive an additional $900 in CDCTC benefits to help offset the cost of child care. Moreover, a working-class family of four making $15,000 a year could receive as much as $3,000 in CDCTC tax refunds and credits. Additionally, this would also benefit low-income families that currently do not have a federal tax liability.
Read our full one-pager on the PACE Act for more information (pdf).