Loading...
Understanding and Mitigating the Effects of the Childcare Cliff: A Case Study of Vermont
Rayson, Lauren Alexandra
Rayson, Lauren Alexandra
Citations
Altmetric:
License
DOI
Abstract
This research focuses on Vermont’s childcare cliff, examining how credit levels of different programs are impacted by changes in income. Specifically, it focuses on the Earned Income Tax Credit, the Child and Dependent Care Credit, the Child Tax Credit, and the Child Care Financial Assistance Program. It contains case studies that highlight how different life events – including increases in income and changes in marital status – impact the credit amounts that a family is receiving. This paper discusses the impacts of Vermont’s childcare cliff, specifically focusing on how the cliff creates high implicit and explicit marginal tax rates for those experiencing it. It concludes with policy recommendations the state of Vermont could utilize to mitigate the effects of the childcare cliff.
Description
Date
2018-01-01