Proposed Legislation Could Save You Thousands of Dollars
There has never been a more exciting time to be involved in early childhood education than today. As you read this, education policy is being reevaluated at the highest levels of government. With hundreds of billions of dollars already spent to stimulate the economy and even more to come, President Obama and Congress are seeking immediate opportunities to promote job growth and grow the economy.
So what are some legislative actions that might satisfy these goals? Two bills that are under consideration are H.R. 460 and S. 210, each of which, if enacted, could mean that families save thousands of dollars each year on early childhood education and care. Both bills (which are virtually identical) expand the Dependent Care Tax Credit and provide additional direct and indirect support to families who are struggling to find and afford quality programs for their young children. Specifically, if enacted, H.R. 460 and S. 210 would:
- Expand the Dependent Care Tax Credit: Currently, the Dependent Care Tax Credit isn’t available to many families that need it the most, the poor and working poor. These bills would not only decrease the amount of money that families who pay for child care owe in taxes, it would also reach poor families that need it most, but currently can’t get it. And for those families who are eligible, it would help them pay for high quality child care – including programs offered by companies like CCLC – so that they can go to work and know that their children are safe and in a high quality educational program.
- Increase the Employer-Provided Child Care Credit: Many employers sponsor child care for their employees. This is incredibly beneficial for employees, who can have their young children close by, as well as for employers who experience enhanced productivity as well as improved ability to attract and retain top talent. To offset some of the high costs for providing on- or near-site programs, the government offers employers a tax credit. These bills would increase the credit, thus encouraging more employers to sponsor child care.
- Increase in Dependent Care Flexible Spending Accounts: Many employers offer their employees the opportunity to put money into flexible spending accounts for things such as health care and dependent care. The money that employees place into these accounts isn’t taxed (for employees and for employers that pay payroll tax). This bill would double the maximum amount that you could put into a dependent care flexible spending account, potentially doubling the amount of money you may save on taxes under the current program.
As you can see, these bills actually increase employment by promoting jobs in a sector that can’t be outsourced and by helping parents go to work knowing that their children are being cared for. At the same time these bills ensure that children throughout our country have better access to high quality programs that support their growth and development. They also help the economy in the long run by ensuring that our children and our country are advantaged by the long term benefits of early childhood education that have been well documented by economists, public policy experts, and even highlighted on this blog.
Passing bills like H.R. 460 and S. 210 requires broad support from the House of Representatives, the Senate, and the President. If we want more children to have access to high-quality early childhood education, we are the ones that have to build that support. I’m going to contact my U.S. Representative, my U.S. Senator, and President Obama to tell them that I support H.R. 460 and S. 210, and that they should too. Do you want to contact your legislators and President Obama? If so, you can click here to find their contact information.
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