In tonight’s State of the Union address, the President is expected to outline major changes to the tax code that will have an impact on childcare, education benefits, and provide funding for the President’s proposal to provide two years of free community college.
The changes are likely to focus on simplifying and eliminating some of the biggest loopholes in the code, according to a Fact Sheet released by the White House ahead of the address. “Middle class families today bear too much of the tax burden because of unfair loopholes that are only available to the wealthy and big corporations,” the Fact Sheet said.
In addition, the changes will include streamlining and expanding childcare tax benefits, a well as consolidating six overlapping education provisions into just two. The plan will also improve the American Opportunity Tax Credit to provide more students up to $2,500 each year over five years as they work toward a college degree, according to the White House.
“These new policies build on longstanding proposals to extend important tax credit improvements for working families, expand the Earned Income Tax Credit, provide quality preschool for all four-year-olds,” the Fact Sheet said.
