With tax reform on center stage in Washington, U.S. Rep. Stephanie Murphy, D-Fla., is continuing her push for improving tax benefits for child care.
Over the summer, Murphy teamed up with U.S. Rep. Kevin Yoder, R-Kansas, to unveil the “Promoting Affordable Childcare for Everyone (PACE) Act.” The proposal would update the Child and Dependent Care Tax Credit (CDCTC) and Dependent Care Flexible Spending Accounts (FSAs). Under Yoder’s and Murphy’s proposal, the CDCTC would be refundable and move the top rate up to 35 percent to 50 percent depending on the family’s income level. The proposal would also raise the amount families can put into Dependent Care Flexible Spending Accounts from $5,000 to $7,500.
Yoder and Murphy both cited stats showing a family earning $55,000 annually would receive an additional $900 in credits if their proposal passed. Murphy’s office noted “only 30 percent of Florida families can afford infant care” which costs, on average, more than $8,600 in the Sunshine State.
In recent days, Yoder and Murphy have double down on their support of their proposal. On Friday, they sent a letter to the House Ways and Means Committee leadership, urging them to take up their legislation. Earlier in the month, they met with Ivanka Trump who has been urging her father’s administration to include family considerations, including expanding child tax credits, as part of tax reform.
“Raising a family is a blessing, but the rising cost of child care is cutting into the budgets of hard-working families in Florida and communities across the country,” Murphy said on Monday. “The PACE Act gives families much-needed tax relief so they can afford to care for their children and loved ones if they choose to join the workforce. Access to high-quality child care doesn’t only benefit families, it’s also key to strengthening the economy for all Americans.”
“This is what tax reform is all about – working families, working mothers, helping them afford the ability to get back into the workforce, to start that small business they’ve always wanted to, and ultimately to climb the economic ladder and achieve the American dream,” Yoder said. “The costs of child care have risen nearly 170 percent over the last 25 years, but the tax code hasn’t reflected that increase. Adding our ideas to tax reform will go a long way to delivering more relief to those who need it the most.”
Murphy is not the only member of the Florida delegation calling for bringing in family considerations as part of tax reform. Earlier in the month, the Senate brought in U.S. Sen. Marco Rubio’s, R-Fla., and U.S. Sen. Mike Lee’s, R-Utah, “Economic Growth and Family Fairness Tax Plan,” which expands child tax credits, as part of its initial budget maneuvering.
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