Low- and middle-income working parents frequently spend a significant portion of their income on child care. As an increasing number of single parents take jobs, and as the number of two-earner families continues to rise, child care expenses are an unavoidable and increasingly unaffordable expense for these families. This policy brief looks at one way of making child care more affordable: the dependent care tax credit offered by the federal government and many states.
Meg Wiehe
Meg Wiehe is ITEP’s deputy executive director. She joined ITEP in 2010 after spending several years working on tax policy in her home state of North Carolina. She coordinates ITEP’s federal and state tax policy research and advocacy agenda. Meg works closely with policymakers, legislative staff and state and national organizations to provide guidance and research on policy solutions that will achieve equitable and sustainable federal, state and local tax systems.
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brief September 1, 2011 Reducing the Cost of Child Care Through Income Tax Credits
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report August 15, 2011 Texas is a Low Tax State, But Not for Families Living in Poverty
Data from the Census Bureau shows that overall, Texas could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Texas… -
report August 14, 2011 Washington is a Low Tax State, But Not for Families Living in Poverty
Data from the Census Bureau shows that overall, Washington could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Washington… -
report August 14, 2011 Tennessee is a Low Tax State, But Not for Families Living in Poverty
Data from the Census Bureau shows that overall, Tennessee could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Tennessee… -
report August 14, 2011 Florida is a Low Tax State, But Not for Families Living in Poverty
Data from the Census Bureau shows that overall, Florida could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Florida… -
report August 14, 2011 Arizona is a Low Tax State, But Not for Families Living in Poverty
Data from the Census Bureau shows that overall, Arizona could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Arizona… -
report July 14, 2011 Sales Tax Holidays: A Boondoggle
Sales taxes are among the most important–and most unfair–taxes levied by state governments. Sales taxes accounted for a third of state taxes in 2011, but sales taxes are regressive, falling far more heavily on low- and middle- income taxpayers than on the wealthy. In recent years, lawmakers thinking they might lessen the impact of these taxes have enacted “sales tax holidays” that provide temporary sales tax breaks for purchases of clothing, computers, and other items. This policy brief looks at sales tax holidays as a tax reduction device.
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report June 23, 2011 Expert to North Carolina: Don’t Cap the Gas Tax
With the state’s gas tax pegged to the price of gasoline, North Carolina is scheduled to raise its gas tax rate on July 1. This increase was entirely predictable, but… -
report May 14, 2011 Connecticut Takes a Stand for Progressive Tax Policy and a Balanced Budget Approach
Five months into 2011, a glimmer of hope for progressive tax policy and a balanced, sensible approach to state budget woes has emerged in Connecticut. Lawmakers in all but a… -
report April 13, 2011 ITEP’s Testimony on Sales Tax Modernization Proposal
My testimony focuses on Governor Chafee’s Sales Tax Modernization Proposal, which would generally broaden Rhode Island’s sales tax base, lower the general state sales tax rate, and raise additional revenue… -
report April 10, 2011 Don’t Give Up on Pease: States Can Decouple from Recent Federal Tax Cuts for Wealthy Itemizers
In 2011, thirty one states and the District of Columbia allow a group of income tax breaks known as “itemized deductions” (Figure 1). Itemized deductions are designed to help defray… -
report March 10, 2011 Topsy-Turvy: State Income Tax Deductions for Federal Income Taxes Turn Tax Fairness on its Head
The budget outlook for state governments is bleak. Despite evidence that revenues are rebounding, there is a general acknowledgement that ?broad fiscal conditions remain fragile. The need for public investments—particularly… -
report March 3, 2011 The ITEP Guide to Fair State and Local Taxes
The ITEP Guide to Fair State and Local Taxes, released in March of 2011, offers citizens, activists, journalists, and policymakers a detailed primer on state and local tax policy. The… -
report January 15, 2011 A Capital Idea
The budget outlook for the states is improving, but uncertain. In this context, states must find ways to generate additional revenue that create neither additional responsibilities for individuals and families… -
report December 15, 2010 The Good, the Bad and the Ugly: 2010 State Tax Policy Changes
Compared to previous years, the budget outlook for the states improved only slightly in 2010 and virtually every state continued to face a budget shortfall. As a result, the overwhelming… -
report September 15, 2010 Census Data Reveal Washington’s Fundamental Tax Mismatch: Washington is a Low Tax State, But Not for Families Living in Poverty
Recently released data from the Census Bureau confirms that overall Washington could be considered a “low tax state.” However, families living near or below the poverty line generally do not… -
report September 15, 2010 Census Data Reveal Texas’ Fundamental Tax Mismatch: Texas is a Low Tax State, But Not for Families Living in Poverty
Recently released data from the Census Bureau confirms that overall Texas could be considered a “low tax state.” However, families living near or below the poverty line generally do not… -
report September 15, 2010 Census Data Reveal Tennessee’s Fundamental Tax Mismatch: Tennessee is a Low Tax State, But Not for Families Living in Poverty
Recently released data from the Census Bureau confirms that overall, Tennessee could be considered a “low tax state.” However, families living near or below the poverty line generally do not… -
report September 15, 2010 Census Data Reveal Florida’s Fundamental Tax Mismatch: Florida is a Low Tax State, But Not for Families Living in Poverty
Recently released data from the Census Bureau confirms that overall, Florida could be considered a “low tax state.” However, families living near or below the poverty line generally do not… -
report September 15, 2010 Census Data Reveal Arkansas Fundamental Tax Mismatch: Arkansas is a Low Tax State, But Not for Families Living in Poverty
Recently released data from the Census Bureau confirms that overall, Arkansas could be considered a “low tax state.” However, families living near or below the poverty line generally do not… -
report September 15, 2010 Census Data Reveal Arizona’s Fundamental Tax Mismatch: Arizona is a Low Tax State, But Not for Families Living in Poverty
Recently released data from the Census Bureau confirms that overall Arizona could be considered a “low tax state.” However, families living near or below the poverty line generally do not… -
report September 15, 2010 Credit Where Credit is (Over) Due: Four State Tax Policies Could Lessen the Effect that State Tax Systems Have in Exacerbating Poverty
The ongoing recession has had an unrelenting impact on families and communities in every state across the country. Millions of Americans are without work and in many cases those with… -
report August 24, 2010 “Writing Off” Tax Giveaways: How States Can Help Balance Their Budgets by Reforming or Repealing Itemized Deductions
“Writing Off” Tax Giveaways examines options for reforming itemized deductions in the thirty-one states, plus DC, that offer such deductions. The study, released on August 24, 2010, focuses on five… -
report April 22, 2010 Pending Georgia Tax Changes Would Redistribute Income From the Poorest Families to the Rich
In the 2010 legislative session, Georgia lawmakers have ratified, or are poised to ratify, a set of tax changes which would dramatically reshape the fairness of the state’s tax system.…