Tag: ‘CDCTC’

Tax Subsidies for Childcare Expenses Target Middle-Income Families, Missing Many Poor Parents

By :: September 11th, 2015

Congress created two tax benefits to help offset work-related childcare expenses– the Child and Dependent Care Tax Credit (CDCTC) and the employer-provided childcare exclusion. But recently released data from the Treasury show that neither helps many of those parents who struggle the most to pay for childcare. Over half of childcare benefits will go to […]

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How Obama’s Tax Plan Will Redistribute Income from the Very Rich To The Poor

By :: January 28th, 2015

President Obama’s latest tax package, which he’ll unveil in detail next week along with his new budget, would lower taxes for low-income households and significantly raise taxes for the highest income 1 percent—those making $663,000 or more, according to new Tax Policy Center estimates.  Middle-income households would see relatively modest changes in their tax bills. […]

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“They Said That They Would Do It and Indeed They Did.” 

By :: December 15th, 2014

“Oh, what a night…” but no shut down. Ted Cruz and a handful of allies succeeded in delaying the Senate vote on the 2015 budget, but they couldn’t stop it. The $1.1 trillion spending bill was approved late Saturday night by a vote of 56-40. And three months into the fiscal year, most of the […]

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The “Helping Working Families Afford Child Care Act” Would Help, but Doesn’t Solve the Timing Mismatch

By :: July 28th, 2014

The Child and Dependent Care Tax Credit (CDCTC) does not work for low-income families. It fails on three counts – the credit is nonrefundable, covers only a portion of expenses, and comes long after expenses have been incurred. Senators Jeanne Shaheen (D-NH), Barbara Boxer (D-CA), Patty Murray (D-WA), and Kristin Gillibrand (D-NY) have proposed the […]

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High Income Households Would Pay Most—But Not All—of the New Taxes in Obama’s 2014 Budget

By :: April 22nd, 2013

The revenue proposals included in President Obama’s 2014 budget would, as intended, significantly raise taxes on the highest-income American households. However, despite Obama’s long-standing pledge to protect individuals making below $200,000 (and couples making $250,000 or less) from any tax hikes, even many of those families would pay slightly more than under today’s tax law. […]

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Simplifying Child Care Tax Benefits

By :: April 15th, 2013

Every year at tax time I am reminded of two tax benefits that subsidize my children’s child care – the employer-provided child care exclusion and the Child and Dependent Care Tax Credit (CDCTC). Families with sufficient expenses can benefit from both provisions. Congress could simplify these child care benefits by harmonizing the maximum allowable expenses for […]

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