Dive Brief:
- Democratic presidential candidate, Hillary Clinton, has proposed a tax credit of 20% towards up to $6,000 in caregiving costs for elderly family members, for a $1,200 maximum tax savings.
- This proposal is part of Clinton's series of tax proposals aimed at the middle class. She is also seeking additional Social Security benefits for those taking time off work to care for their immediate family - a plan with a $10 billion price tag over 10 years - funded via other revenue increases, according to The Washington Post.
- Clinton is also proposing a tax credit of $5,000 maximum for families and $2,500 maximum for individuals for those with out-of-pocket health expenses greater than 5% of their income. This will be funded through tax increases on wealthy families and by "demanding" rebates from drug manufacturers.
Dive Insight:
Fred Brown, Republican National Committee spokesman was quick to criticize the proposal's costs, saying, "Hillary Clinton's solution to every pressing policy issue is to expand government and raise taxes, and this plan is no different as it will cost hardworking Americans billions."
However, Clinton has said she is the only primary candidate committed to not raising taxes on the middle class and has accused Sen. Bernie Sanders (D-VT) of promoting programs that would raise taxes, including his single-payer health system.
Sen. Sanders' communications director Michael Briggs said in a statement, "Given the disappearing middle class and massive income wealth inequality in America today, we clearly have to go a lot further than what Secretary Clinton proposes."
There is currently a bill pending in Congress that would require employers to provide paid family leave after the birth of a child. But, it would be funded by increased payroll taxes, costing the average worker about $72 a year. Clinton hasn't backed the measure because it violates her campaign pledge not to raise taxes on families with incomes below $250,000. However, Sen. Sanders backs the bill.