Johnson introduces kiddy-care tax bill for working parents
Washington,
May 7, 2009 -
Today U.S. Congressman Sam Johnson (3rd Dist.-Texas) introduced bipartisan legislation to help working parents pay for child care.
“Raising children is tough enough, especially in these difficult economic times. This common-sense bill provides some help for parents who are working hard and trying to do the best for their kids,” said Johnson.
Introduced by Democrat John Yarmuth (3rd Dist.-Ky.) and Johnson, the Expanding Dependent and Child Care Act of 2009, H.R. 2298, better enables working parents to afford the ever rising cost of child care. A popular and important tax benefit, the dependent care flexible spending account allows parents to set aside pre-tax up to $5,000 of their earnings in order to pay for child care in an employer-sponsored account, commonly known as the Dependent Care Flexible Spending Account (DCFSA). Unfortunately, as the amount that can be set aside for child care has not been indexed for inflation, the value of this benefit has decreased over the years. Johnson’s bill would increase the amount from $5,000 annually to $7,500 per year and index the higher amount to inflation.
While the dependent care flexible spending account is most commonly associated with child care, it also may be used for elderly dependent care for adults who live with the taxpayer. The DCFSA can not be used for summer sleepover camps or for long term care for parents who live away from home, such as in a nursing home.
Many working families can no longer afford to pay the rising cost of health care, and some parents who want to work must abandon their careers,” said Congressman John Yarmuth. “This legislation will offer some much-needed child care assistance to working families and help businesses retain a strong and productive workforce.”
Representatives Linda Sanchez (D-CA) and Peter Roskam (R-IL) are also original co-sponsors of the Act with Johnson and Yarmuth. All of these Members of Congress serve on the tax-writing Ways and Means Committee.
Johnson represents portions of Dallas and Collin Counties in North Texas.
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