Wednesday, January 21, 2015

Obama tilts the scales against stay-at-home moms

The Washington Examiner reports:
Obama, alongside his tax hikes on the wealthy and on people who save for their children’s college, proposed tax cuts that go only to dual-income families.

Obama called for a new “second-earner tax credit” and expanding a tax credit for commercial child care. Obama’s second-earner credit is worth $500 for any dual-income family where the lower-income spouse earns between $10,000 and $120,000 (and reduced credits for others between $0 and $210,000).

The president also encouraged Congress to expand the Child and Dependent Care Tax Credit. The child and dependent care credit is different from the more widely used child tax credit. The child care credit is a 50-percent tax credit for a parent’s first $2,000 in babysitting or daycare costs, but this credit is available only for parents who use the child care to do paid work.

If you hire child care to take your car to the shop, get the kids safely out of range while you paint your living room or just get some peace and quiet while your husband is Iowa for three days covering the presidential caucuses, no tax credit. Hire a babysitter in order to earn your own paycheck, and you get a tax credit.
Obama's war against the middle class.