Reps. Kelly & Sánchez Introduce Bipartisan Tax Relief Bill for Working Families

May 4, 2016 Issues: Tax Reform

Legislation modernizes tax code to help working parents afford quality childcare, balance careers

Senate companion introduced by Sens. Ayotte & Capito

WASHINGTON — U.S. Representatives Mike Kelly (R-PA) and Linda Sánchez (D-CA) – members of the House Ways and Means Committee – issued the following statements today regarding their introduction of the Working Families Relief Act (H.R. 4867) in the House of Representatives. The legislation would increase the maximum amount that employees can set aside or employers can provide to the Dependent Care Assistance Program (DCAP), a flexible spending account which can be used to pay for childcare on a pre-tax basis. H.R. 4867 would raise the cap from $5,000 to $10,500 and index it for inflation. It would also provide tax credits to employers who match the DCAP contributions in order to encourage them to offer this benefit. The Senate companion to this bicameral bill was introduced by Sens. Kelly Ayotte (R-NH) and Shelley Moore Capito (R-WV).

Statement by Rep. Kelly (R-PA):

“Early education is critical for a child’s healthy development and for giving him or her a fair opportunity to succeed in life. Unfortunately, working families often struggle to cover costs for quality care in today’s economy, which have reached more than $10,000 a year. This bipartisan, bicameral legislation will help parents overcome that difficulty by expanding and modernizing DCAP accounts, which currently help more than 1.3 million families pay for child and dependent care annually. Just in time for Mother’s Day, this bill is pro-family and pro-common sense.”

Statement by Rep. Sánchez (D-CA):

“As a working mom myself, I understand that every working parent wants to be able to do it all. We often have to make sacrifices in both our personal lives and our careers just to keep up. But a little help can make a world of difference for a hard working family. The Working Families Relief Act seeks to make it easier for working families to afford childcare. I look forward to working with Rep. Mike Kelly and Sens. Kelly Ayotte and Shelley Moore Capito to support working families across the country.”

Statement by Sens. Ayotte (R-NH) and Capito (R-WV):

“As working mothers ourselves, we know firsthand the importance of giving families flexibility and options to balance their careers and personal lives. The Working Families Relief Act will make it easier for small businesses to offer childcare to their employees on a pre-tax basis. This bill already has bipartisan support in the House, and we’ll push for its swift passage so we can better support working women and families all across the country.”

Statement by Mark Shriver, president of Save the Children Action Network:

“Many parents know that without high-quality learning programs, their children could fall behind and never catch up. Families want to provide their children with this kind of quality care; however, for many it’s simply unaffordable. Expanding the Dependent Care Assistance Program so more working families can participate will make child care costs more affordable and help parents ensure their children have a strong start in life. I want to thank Representatives Mike Kelly and Linda Sanchez for leading on the Working Families Relief Act in the House.”