Media Contact: Allie Wright, [email protected], (202) 794-1823

Proposed plan does not expand the Child and Dependent Care Tax Credit

Washington, D.C. (November 10, 2017) – The Senate tax reform plan introduced on Capitol Hill Thursday does not expand or enhance the Child and Dependent Care Tax Credit (CDCTC), thereby failing to live up to the President’s campaign promise to help low-income families better afford the soaring cost of high-quality child care.

“This plan, like the House plan released last week, fails kids and treats them as an afterthought while special interests are rewarded with billions of dollars in tax breaks,” said Mark Shriver, president of Save the Children Action Network (SCAN). “While some senators will undoubtedly claim this plan helps working families and their children, the reality is that if lawmakers are serious about investing in kids, they must incorporate the proposal from Senator Richard Burr, Senator Angus King, and Senator Dean Heller that would expand the child care tax 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 child care tax credit via the Promoting Affordable Childcare for Everyone (PACE) Act. The PACE Act is bipartisan legislation—sponsored by Senator Richard Burr (R-NC) and Senator Angus King (I-ME) in the Senate as well as Rep. Kevin Yoder (R-KS) and Rep. Stephanie Murphy (D-FL) in the House—that makes the CDCTC refundable, increases the credit’s value, and indexes it to inflation.

“Tax reform is a rare opportunity for Congress to ensure equal opportunity for all kids, regardless of their economic background. By not expanding the child care tax credit, the Senate bill falls short in helping more middle- and low-income families afford high-quality child care and early childhood education,” said Shriver.

Shriver concluded: “SCAN and our early childhood education advocates are ready to work with Senators Burr, King and Heller and other allies in the Senate to expand and enhance the child care tax credit in the tax reform bill, as well as ensure that the White House upholds President Trump’s campaign promise to deliver meaningful tax relief for child care costs.”

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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.