Nightly Nuance - January 19, 2021

Hello my friends. There are so many things in the world to discuss, but I want to spend some time with you today talking more about the Biden-Harris rescue plan and its specific focus on children, families, and childcare. 

Y'all know the problem, but let's define it with some numbers: 

- One in 4 women are considering downshifting in their careers or leaving the workforce 

- In December, women accounted for 100% of lost jobs

- Women of color are disproportionately impacted by the Shecession

- Women in service industries are disproportionately impacted

- There were 2.1 million fewer women in the workforce at the end of 2020 than at the beginning. 

So, the Biden-Harris focus on childcare can't get here soon enough. 

First, let's talk about the Child Tax Credit expansion, and let's level-set with some terms because taxes are hella complicated. 

A tax deduction is a way to reduce your taxable income. A tax credit reduces your tax bill, dollar for dollar. A nonrefundable tax credit can reduce your tax bill to zero dollars, but it will not get money back to you from the government. A refundable tax credit can reduce your tax bill to zero dollars and potentially get money refunded to you. Here's a calculator from the IRS to help you figure out if you currently qualify for the Child Tax Credit. 

With all of that in mind, the proposal to increase the Child Tax Credit and make it refundable for a year could work wonders in reducing child poverty. Senator Michael Bennett, who has been pushing this thinking for a long time, estimates that it will cut total child poverty by 45% (and it will do even better for Black children - 52%, and Native American children - 61%). 

Biden and Harris are also calling for a boost to tax credits for childcare spending. For families making less than $125,000 annually, 50% of childcare expenses up to $4000 for one child (and up to $8000 for two or more children) could be reimbursed as a tax credit. Families making $125,000 - $400,000 would receive a partial credit. 

Additionally, the rescue plan proposes an additional $25 billion for childcare centers to safely reopen; $15 billion for the Childcare Development Block Grant, which helps low-income families afford childcare; and $130 billion to help K-8 schools safely reopen within the first 100 days. This is the kind of thinking we desperately need, and I hope Congress passes this quickly as step one in better supporting America's families.