Trending
​
Top Tags

PROPOSAL: The Trump plan will rewrite the tax code to allow working parents to deduct from their income taxes child care expenses for up to four children and elderly dependents.

The deduction is available for taxpayers who take the standard deduction as well as itemize deductions, and will be capped at the average cost of care for the state of residence. Individuals earning more than $250,000 (or $500,000 if filing jointly) will not be eligible for the deduction. For a family earning $70,000 per year in the 12 percent tax bracket with $7,000 in child care expenses, the deduction would reduce taxes by $840 per year.

The plan will offer child care spending rebates to lower-income taxpayers through the existing Earned Income Tax Credit (EITC). This could mean almost $1,200 per year per eligible family.

Mr. Trump’s plan will ensure stay-at-home parents will receive the same tax deduction as working parents, offering compensation for the job they’re already doing, and allowing them to choose the child care scenario that’s in their best interest.

PROPOSAL: The Trump plan would create new Dependent Care Savings Accounts (DCSAs) so that families can set aside extra money to foster their children’s development and offset elder care for their parents or adult dependents. These new accounts are available to everyone, and allow both tax-deductible contributions and tax-free appreciation year-to-year-unlike current law Dependent Care Flexible Spending Accounts (FSAs), which are available only if it is offered by an employer and does not allow balances to accumulate.

When established for a minor, funds from a DCSA can be applied to traditional child care, after-school enrichment programs and school tuition-contributing to school choice. To help lower-income parents, the government will match half of the first $1,000 deposited per year. When established for an elderly dependent, a DCSA can cover a variety of services, including in-home nursing and long-term care.

PROPOSAL: Mr. Trump’s plan will provide regulatory reform to promote new family-based and community-based solutions, and also add incentives for employers to provide child care at the workplace. The ability to set aside funds will be particularly helpful to women, low-income workers and minorities, who are statistically more likely to reduce time working outside the home in order to provide unpaid care.

PROPOSAL: The Trump plan will guarantee six weeks of paid maternity leave by amending the existing unemployment insurance (UI) that companies are required to carry. The benefit would apply only when employers don’t offer paid maternity leave, and would be paid for by offsetting reductions in the program so that taxes are not raised. This enhancement will triple the average paid leave received by new mothers.

 
On By Admin

You may also like

Supply shortages aren’t unintentional – they’re actually planned

 Supply chains around the world have been facing shortages in recent months due to several factors. However, book author and blogger Charles Hugh Smith argues that the shortages are actually intended to increase the profits of global companies. He adds that the shortages are designed to prevent potential competitors from entering the market and undermining revenue streams.

White House Taunts Texas and Florida for Fighting Vaccine Mandates

The White House on Tuesday warned Republican governors of Texas and Florida that President Joe Biden would override their efforts to fight coronavirus vaccine mandates in their states.

Trump signals at Iowa rally that he intends to run in 2024, teases that his campaign slogan will be 'Make America Great Again, Again'

Former President Donald Trump visited Iowa on Saturday for a campaign-style rally at Iowa State Fairgrounds in the capital Des Moines.

Rand Paul Warns Americans To “Be Afraid Of Your Government”; Says Watchlists Of Dissenters “Already Exist”

Appearing on Fox News Wednesday, Senator Rand Paul warned Americans that they should now “be afraid of your government,” adding that watchlists of dissenters are actively being compiled by the Biden administration.
There is something wrong with Feed URL