Can the Tax System Be Used to Help Working Families Afford Child Care? A Conversation with Representatives Kevin Yoder (R-KS) and Stephanie Murphy (D-FL)
With Angela Rachidi | Katharine B. Stevens | Alan D. Viard
EVENT
November 15, 2017
Event Summary
On Wednesday at AEI, Reps. Kevin Yoder (R-KS) and Stephanie Murphy (D-FL) discussed the bipartisan Promoting Affordable Childcare for Everyone (PACE) Act, which expands and strengthens the coverage of the Child and Dependent Care Tax Credit (CDCTC) and Flexible Savings Accounts. Reps. Yoder and Murphy noted that the high costs of child care create a large barrier to work. A more expansive CDCTC that better targeted lower-income families would encourage parents to enter or remain in the labor force, stimulating US economic growth.
During the panel discussion, AEI’s Alan D. Viard emphasized the role of tax relief that targets the costs incurred to work, such as child care, in effectively encouraging labor force participation. The Urban Institute’s Elaine Maag added that the CDCTC covers only 12 percent of families because it is nonrefundable. However, if the CDCTC were made refundable, as proposed in the PACE Act, these benefits would concentrate more with the most needy.
AEI’s Katharine B. Stevens expressed disappointment with the PACE Act because it does not sufficiently target those most in need. Sarah Rittling of the First Five Years Fund suggested a reevaluation of early education and child care affordability and accessibility programs to truly get to the root of the issue.
Event Description
Federal and state lawmakers have been trying to develop ways to increase child care assistance to low-income families. One approach is to use the tax system by reforming the Child and Dependent Care Tax Credit (CDCTC). What advantages does the CDCTC offer to working families? What are the disadvantages compared to other forms of child care assistance?
Please join AEI for a discussion with Representatives Kevin Yoder (R-KS) and Stephanie Murphy (D-FL), cosponsors of the Promoting Affordable Childcare for Everyone Act (PACE Act), on the impact of reforming the CDCTC. Following the discussion, an expert panel will analyze and critique current reform efforts to the CDCTC and other efforts to increase the affordability of child care for low-income American families.
Agenda
2:45 PM
Registration
3:00 PM
Introductory remarks:
Angela Rachidi, AEI
3:05 PM
Remarks:
Kevin Yoder, US House of Representatives (R-KS)
3:10 PM
Remarks:
Stephanie Murphy, US House of Representatives (D-FL)
3:15 PM
Discussion
Participants:
Stephanie Murphy, US House of Representatives (D-FL)
Angela Rachidi, AEI
Kevin Yoder, US House of Representatives (R-KS)
3:35 PM
Q&A
3:45 PM
Panel discussion
Participants:
Elaine Maag, Urban Institute
Sarah Rittling, First Five Years Fund
Katharine B. Stevens, AEI
Alan D. Viard, AEI
Moderator:
Angela Rachidi, AEI
4:30 PM
Q&A
4:45 PM
Adjournment
See Also
Op-Ed ~ October 22, 2017
Op-Ed ~ January 12, 2017
Event ~ March 2, 2021