And what if one parent staying home to raise the children is the best option for a family? This is the praiseworthy choice of many, yet there’s zero value or recognition by our government for this hard and meaningful work. Under my father’s proposal, stay-at-home parents will receive the same tax deduction as their working peers.
The plan’s second part is the establishment of Dependent Care Savings Accounts, created to aid families in setting aside extra money to foster their children’s development and offset elder care for adult dependents.
These accounts will operate like Health Savings Accounts, with tax-deductible contributions and tax-free appreciation year to year. When established for a minor, funds from a Dependent Care Savings Account can be applied to traditional child care, after-school enrichment programs and school tuition.
To help lower-income parents, the government will match half of the first $1,000 deposited each year. Balances in a Dependent Care Savings Account will roll over from year to year so that a substantial amount of money can be accrued over time.
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