On Monday, Democratic presidential nominee Hillary Clinton proposed a new tax cut aimed at parents with children aged 4 and under, especially those in the middle and lower classes. Clinton's plan would double the child tax credit for parents of young children to up to $2,000 per child, and make the credit refundable, meaning parents who did not earn enough to pay federal income tax would still get the money. Donald Trump's child care plan, which is mostly structured as tax deductions, would offer most of its benefits to higher-income parents.
Clinton says her plan, part of a series of tax cuts for the middle class, would cost $150 million to $200 million over 10 years and be financed by already proposed tax hikes on the wealthiest Americans. "Rich people ought to be paying more federal income taxes to pay their fair share for our country," she said in Detroit on Monday. The child tax policy currently gives parents who earn less than $110,000 a year a $1,000 credit for children 16 and younger.
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