Yoder to Tour Local KinderCare, Host Roundtable Discussion on Rising Childcare Costs & PACE Act
Overland Park, KS – On Wednesday, Representative Kevin Yoder (R-KS) will tour the Mastin Street KinderCare location and host a roundtable discussion with KinderCare officials, childcare experts, parents, and advocates, highlighting his Promoting Affordable Childcare for Everyone (PACE) Act. The bill makes important updates and reforms to the Child and Dependent Care Tax Credit (CDCTC) and Dependent Care Flexible Spending Accounts (FSAs) to help middle class and low-income families pay for care for children and other dependents.
According to the Economic Policy Institute, the average annual cost of care for one infant in Kansas is $11,201, which comes out to about $933 per month and almost 18 percent of a typical Kansas family’s income. It’s about 26 percent higher than the average cost of renting a home and about 52 percent higher than in-state tuition for a four-year public college. According to their research, childcare for two children – an infant and a four-year-old, for example – costs $19,152, which is about 31 percent of a typical family’s income.
WHO: Representative Kevin Yoder
United States Congress – Kansas Third District
Mastin Street KinderCare
Chief Family & Community Engagement Officer
Child Care Aware of America
WHAT: Tour of Mastin Street KinderCare
Roundtable Discussion on Lowering Childcare Costs
WHEN: Wednesday, August 16, 2017
10:00 AM – 10:45 AM
WHERE: Mastin Street KinderCare
10456 Mastin Street
Overland Park, KS 66212
PACE Act Summary:
The PACE Act makes important updates and reforms to the tax provisions that help families care for children and other dependents. Specifically, the bill:
- Improves and modernizes the Child and Dependent Care Tax Credit (CDCTC) by:
- Making the credit refundable. This change will allow the credit to help low-income working parents, whose low or zero tax liabilities prevent them from benefiting from the current CDCTC.
- Increasing the value of the credit. The PACE Act raises the value of the credit by 15% for all families.
- Indexing the credit to inflation. This will help the CDCTC keep pace with rising childcare costs in the future.
- Enhances Dependent Care Flexible Spending Accounts (FSAs) by:
- Increasing the amount of pre-tax dollars that families can put into FSAs from $5,000 to $7,500. This money is excluded from gross income and allows families to reduce their tax burden while paying for important care for dependents.
- Indexing the new cap to inflation so that FSAs are updated steadily and families can save enough money to pay for childcare.
The PACE Act will make tangible improvements to American families’ ability to pay for childcare. For example:
- Low income family of four making less than $15,000 a year:
- Current law: receives zero CDCTC benefit.
- PACE Act: maximum annual CDCTC refund of $3,000 to help pay for childcare.
- Middle class family of four making $55,000 a year:
- Current law: maximum annual CDCTC benefit of $1,200.
- PACE Act: maximum annual CDCTC benefit of $2,100, which is $900 more to help pay for childcare.