Source: IowaMediaWire/Pinterest
Democratic Governor Tony Evers signed a bill to increase child tax credit for better child care in Wisconsin. Over 110,000 taxpayers in the state will receive this extra cash thanks to this new law signed by their state Governor. The law, called Assembly Bill 1023, was passed on the 4th of March. Now, families can get back 100% of what they spend on child and dependent care instead of just 50%. This will help families who find it hard to pay for taking care of their children or other dependents.
The new child tax credit law means that people can now claim more expenses when they file their taxes, up to $10,000 for one dependent. They can file about $20,000 for two or more dependents. On average, each person filing taxes will get about $656 back, according to the Governor’s statement. This change will provide nearly $73 million in tax relief every year, starting in 2024.
Governor Evers stated that childcare costs are too expensive, and making childcare more affordable in Wisconsin is essential for families and the state’s workforce. “By signing this bill today, we are taking a big step. We are reducing the amount of money families have to spend on child care every year. This will give families in Wisconsin some extra money to use for other things. It will help us make sure that our kids get the help and care they need when they’re young,” the governor said.
Governor Evers explained in an interview that Wisconsin is facing a severe problem with child care. The cost of child care is going up a lot for families who work. There aren’t enough places for kids to go for child care. The areas that do exist are having a hard time staying open because of money problems. This really affects families. If a child can’t go to childcare anymore or if a parent can’t afford it, someone has to stay home to take care of them. Governor Evers wants people to understand that not having child care that is easy to get to and affordable affects everyone who works in the state.
Peter Barca, who works as the secretary of the Wisconsin Department of Revenue, made a statement. He mentioned that the bill would be suitable for parents and would also help the economy of Wisconsin. Peter said, “It will help small businesses and the people who work for them.” He added that it will be helpful for families and children. Additionally, daycare providers will benefit because parents will be able to afford daycare more easily.
Tamara Johnson, who leads the Malaika Early Learning Center in Milwaukee, expressed her relief. She said, “Many families have been struggling with this issue for a long time.” She added, “Some families have to choose between paying for childcare or rent. Families who work should have the chance to enroll their kids in good-quality childcare.” However, some childcare supporters worry that the recent changes won’t immediately help parents with the high costs they’re facing.
Corrine Hendrickson, who takes care of kids in New Glarus and also works to improve child care, explained something. She explained to the Wisconsin Examiner that the tax relief doesn’t immediately help parents pay for child care. This is because they won’t get the money until next spring. She pointed out that even when parents do get some money back, it’s not enough. It’s even worse when they have more than one child. For families struggling the most, this relief might not help at all. Also, it doesn’t make child care more available because it doesn’t let child care centres charge more. They can’t increase tuition without making it too expensive for families. A situation that could force them to choose between child care and their employment.