Senator Hawley Introduces $12,000 Parent Tax Credit Bill

Today U.S. Senator Josh Hawley (R-Mo.) announced legislation to create the Parent Tax Credit, a tax cut to help working parents afford to start a family and raise their children.

Through a fully refundable tax credit provided directly through automatic, monthly advances, Senator Hawley’s Parent Tax Credit gives working parents the flexibility they need to make the best choices for raising their families.

Although most American families believe children are better off when one parent stays home to care for them, current federal childcare programs and policies force both parents into the labor market and require children be enrolled in formal commercial childcare.

Senator Hawley’s legislation creates a fully refundable tax credit of $6,000 for single parents and $12,000 for married parents with qualifying children.

“Starting a family and raising children should not be a privilege only reserved for the wealthy. Millions of working people want to start a family and would like to care for their children at home, but current policies do not respect these preferences,” said Sen. Hawley. “American families should be supported, no matter how they choose to care for their kids.”

For households with a qualifying child, the Parent Tax Credit is worth $6,000 for single parents and $12,000 for married parents that file a joint tax return. There is no income phase-out. Households that fulfill the eligibility parameters outlined below receive the full benefit.

Seth Hanlon, a tax expert at the liberal-tilting Center for American Progress, told Insider he believed the plan had major design flaws, starting with its earnings threshold.

“That would seem strange if you get nothing if you’re $1 short of that,” Hanlon said. If the Hawley plan was in effect during the pandemic, he said, millions of parents who lost jobs and thus saw their annual incomes fall below $7,540 would have gotten their government aid yanked.


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