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Centering Families in the U.S. Tax Code
This brief reviews existing levers in the tax code and provides a set of recommendations to craft a family first tax policy. Congress should broaden the pool of families eligible for benefits, remove barriers to tax credits’ use, and make it simple for every eligible family to navigate the process of securing benefits. Congress should consider expanding the child tax credit, especially for those families with children who are not yet school-aged, so that we can move closer toward eliminating child poverty. It should preserve and optimize those credits dedicated to helping families pay for child care. For businesses, Congress should address the existing shortcomings of 45F by making the credit more generous, particularly for small businesses. Congress can also tap into other parts of the code to spur child care supply in Opportunity Zones and support the early educator workforce through tax breaks.
Suggested citation:
Cardona, M., Smith, L., Meek, S. (January, 2025). Centering Families in the US Tax Code. The Children’s Equity Project at Arizona State University. https://cep.asu.edu/resources/Centering-Families-in-the-US-Tax-Code.