The Research Connections website is in the process of transitioning all datasets and related materials to the Child & Family Data Archive. Child care and early education research, publications and other resources will remain on Research Connections.

For the best experience, please use Chrome, Firefox, Safari, or Edge.

Proposal 10: Supporting low-income workers through refundable child-care credits

Resource Type: Other
Author(s): Ziliak, James Patrick;
Date Issued: [n.d]
Publisher(s): Hamilton Project
Description: This policy memo introduces a way to restructure an existing federal child-care tax credit to better incentivize work and improve the financial and child well-being for low-income families. Specifically, I propose converting the Child and Dependent Care Credit (CDCC) from a nonrefundable credit--a credit that cannot exceed the income taxes owed by a family--to a refundable credit--one that can result in a net gain after taxes--that is targeted to low- and middle-income families. Because current law does not limit eligibility for the CDCC based on income, the majority of tax expenditures are spent on those families with annual incomes between $100,000 and $200,000 (Maag 2013). I propose capping eligibility at $70,000 and making the credit a progressive function of income, the age of the child (ages zero to four versus five to twelve), and utilization of certified, licensed care facilities. These reforms, to be implemented at the federal level, will make labor market work more attractive to low-income families by providing much-needed financial relief from the high cost of child care. In addition, by reducing the out-of-pocket cost of care for low-income workers, the reformed credit will enable more families to place children in formal instead of informal care settings. (author abstract)
show entire record ↓
Source: Washington, DC: Hamilton Project. Retrieved June 9, 2014, from http://www.hamiltonproject.org/files/downloads_and_links/v10_Ziliak.pdf
Topics: Policies > Economic & Social Policies > Tax Policies
hide record ↑




Our Search Engine Recommends...

what is this? These resources were found by comparing the title, description, and topics of the currently selected resource to the rest of the Research Connections holdings.

Who benefits from President Trump's child care proposals? Other
An expanded and refundable Child and Dependent Care Tax Credit would help make child care more affordable for millions of families Fact Sheets & Briefs
Memorandum re: Developments in federal and state child and dependent care tax provisions in 2015 Other
Assessing President Trump's child care proposals Other
Improving the Child and Dependent Care Tax Credit would help working families and promote tax fairness for women Fact Sheets & Briefs

Disclaimer: Use of the above resource is governed by Research Connections' Terms of Use.