Donald Trump teases plan to tackle costs of child care
WASHINGTON (AP) — When Ivanka Trump introduced her father at last month's Republican convention, she described a tough-talking deal-maker who also worries about family leave, equal pay for women and the cost of child care.
Here's a deeper look at what Trump and his campaign have to say about an issue that is increasingly squeezing the finances of American families with children.
Trump said that under his tax plan, families would be able to deduct the amount they pay for child care from the income they report on their taxes.
[...] exemptions would be limited to the average cost of child care in a taxpayer's state, so parents wouldn't be able to claim the full cost of such a high-price child care option.
A DEDUCTION AND NOT A CREDIT
Because Trump's plan is structured as a tax deduction, rather than a tax credit, it would primarily help more affluent households.
Families of four living at or below the federal poverty line of $24,000 spend 36 percent of their income on child care, said Katie Hamm of the liberal Center for American Progress.
Because it's a credit, those who pay nothing in tax still get that money.