Many working parents know it is challenging and expensive to arrange care for young children.
On an annual basis in Michigan, childcare has been estimated to cost as much as $11,309 -- a substantial portion of any family’s household income. Yet this expense is necessary for many households that need two working parents just to pay the bills. Some parents instead forgo work to care for young children at home, which also greatly impacts household revenue.
In either scenario, current economic conditions present challenges for working lower and middle-income families trying to make ends meet. A four-person household with one infant and one preschooler in Michigan needs an estimated $74,000 annually just to pay for necessities.
The Church, recognizing that families are essential to the common good and a well-functioning society, supports policies that prioritize the well-being of families. This includes promoting policies that provide sufficient opportunities for individuals to support themselves and those dependent on them.
This is why MCC has supported the state’s Earned Income Tax Credit (EITC) policy, which allows lower income, working individuals to keep more of what they earn to help pay for essential needs. Two years ago, a major increase to the EITC received bipartisan legislative support and was signed into law after MCC and more than 200 statewide groups persuaded lawmakers to expand the credit.
MCC and a wide variety of organizations are now encouraging lawmakers to take the next step to continue support for those families who need it most by creating a similar policy to the EITC, known as the Working Parents Tax Credit (WPTC).
The proposed policy builds on the EITC by offering targeted relief to low-income working parents, specifically those who are raising young children. Policymakers on both sides of the aisle agree this population faces major challenges, particularly in accessing affordable childcare. This is what WPTC is designed to address.
The proposed policy would provide a tax credit to EITC-eligible families who make between $10,000 and $60,000 a year. In other words, it would provide targeted tax relief for families who need the most help.
The tax credits would be provided on a per-child basis, for up to three children. For children up to age 3, the credit would pay $5,000 per child, recognizing that care for younger children is more expensive. For children ages 3 to 6, the credit would amount to $2,500. These payments could represent a substantial help toward affording childcare or other essential household expenses.
It should not be surprising that such a proposal is supported by 72% of Michigan voters, according to recent statewide polling. This includes strong majority support among voters who call themselves Democrats, Republicans, and Independents, as well as those who self-identify as conservatives, moderates, and liberals.
What may be surprising is that individuals who would not qualify for the credit based on their income – those making more than $60,000 – support the WPTC as well, the polling data show.
MCC strongly believes WPTC is a critical policy priority for Michigan. It would provide crucial assistance for low-income, working families with young children to meet their needs, while allowing parents to stay in the workforce, which is a benefit to business owners trying to fill jobs. This is why I agreed to be one of the four chairpersons of a statewide steering committee charged with building support for WPTC.
The Church urges the faithful to work for the advancement of the common good, which includes support of policies that build up the family, particularly those with greater economic need. All of us benefit from a society where families can achieve economic stability, allowing them to thrive and grow.
Remember the words of Pope St. John Paul II: “As the family goes, so goes the nation and so goes the whole world in which we live.”
Paul A. Long is president and CEO of the Michigan Catholic Conference, the official public policy voice of the Catholic Church in this state.
