White House Announces Ivanka Trump’s Support For Retaining The Child and Dependent Care Tax Credit

On Tuesday, CNBC reported that Ivanka Trump supports “maintaining” the Child and Dependent Care Tax Credit (CDCTC), according to a White House official. While Ms. Trump has been outspoken in her support for expanding the Child Tax Credit, Tuesday marks the first instance in which she has publicly stated her desire to keep the critical CDCTC in the tax code. Below, please find an excerpt detailing Ms. Trump’s support for maintaining the CDCTC:

Republicans have also been largely mum on whether to keep a separate tax credit that covers child and dependent care. That benefit allows households to exempt up to $6,000 of income, but it is not refundable.

“We certainly support the expansion of the child tax credit, just not at the expense of the child and dependent care tax credit,” said Charlie Joughin, communications director of the First Five Years Fund, a nonprofit focused on early education…”

A White House official said Ivanka Trump supports “maintaining” that credit. A bipartisan bill sponsored by Sens. Angus King and Richard Burr and Reps. Kevin Yoder and Stephanie Murphy calls for increasing the credit to cover as much as half of child care costs and indexing its value to inflation.

While there are a handful of tax credits and deductions that support families with children, only the CDCTC was designed to help working parents with the cost of work-related child care expenses. Nearly 15 million children under the age of six in the U.S. have working parents, and paying for child care presents a significant and growing burden to parents’ ability to enter, return, or remain in the workforce. By keeping the CDCTC in the code, expanding it, and making it refundable, policymakers have an opportunity to help address these working families’ child care needs.

Fortunately, as Tuesday’s CNBC article points out, a bipartisan group of lawmakers in both the House and Senate have introduced the Promoting Affordable Childcare for Everyone (PACE) Act. This legislation proposes an update to child care-related tax credits, making them more impactful for American families. The PACE Act mirrors the First Five Years Fund’s (FFYF) tax priorities by expanding the CDCTC, as well as making it refundable so low- and middle-income families can fully benefit from the credit.

Learn more at ffyf.org/tax/