Photo Courtesy of the White House
President Joe Biden
By Forum Staff
The White House on Thursday released fact sheets that highlight the impact of the investments proposed by President Joe Biden in the American Families Plan in states and territories across the country.
Here are two AFP proposals that would affect families in the Empire State:
TAX CUTS FOR NEW YORK’S FAMILIES AND WORKERS: The American Families Plan will extend through 2025 the American Rescue Plan’s Child Tax Credit increases to $3,000 per child 6 years old and above and $3,600 per child under 6. It will also make the credit fully refundable so that low-income families can now receive the same credit as middle-income families. This extension will benefit 3.5 million children in New York, including almost 2 million children of color, and is estimated to reduce child poverty in the state by 36 percent.
To support families with child care needs, the American Families Plan will provide a permanent increase to the temporary Child and Dependent Care Tax Credit expansion enacted in the American Rescue Plan. Families will get back as a tax credit as much as half of their spending on child care for children under age 13, so they can receive a total of up to $4,000 for one child or $8,000 for two or more children. The full 50 percent reimbursement will be available to families making less than $125,000 a year and all families making between $125,000 and $400,000 will receive a partial credit. The American Families Plan will also make the Earned Income Tax Credit Expansion for childless workers permanent to support low-wage workers. This will benefit 982,700 workers in New York, many of whom are essential workers and 53 percent of whom are people of color.
CHILD CARE: According to the AFP, the average annual cost of a child care center for a toddler in New York is $12,400, meaning that a two-parent household would on average need to spend 12 percent of their income on care for one child every year. The lack of affordable child care also makes it more difficult for women to remain in their jobs, contributing to the 22 percent gender gap in workforce participation between mothers and fathers in New York. And access to care is just as important as cost, especially for the 64 percent of New Yorkers living in areas without enough child care options to meet the need. The American Families Plan will enable low and middle-income families to pay no more than 7 percent of their income on high-quality child care, generating lifetime benefits for 390,000 children under 5 in New York and helping working families make ends meet. We must also make sure child care is a source of good jobs for New York, where the median hourly wage of child care workers is just $13.58. The American Families Plan will ensure a $15 minimum wage for early childhood educators and provide compensation and benefits comparable to kindergarten educators to those with similar qualifications.
