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HB 2440: Extend Working Families Tax Credit

Testimony
May 4, 2021By Daniel Hauser

Chair Nathanson, Vice-Chair Reschke, Vice-Chair Pham, and Members of the Committee,

My name is Daniel Hauser, Policy Analyst for the Oregon Center for Public Policy, and I respectfully submit this testimony in support of HB 2440 on behalf of the Center.

The Oregon Center for Public Policy is a think tank dedicated to improving the economic outcomes for all Oregonians, particularly low-income families and Oregonians of color, through research and analysis.

Oregon families are in desperate need of affordable child care. Child care in Oregon is among the costliest in the country, which compromises child well-being and inhibits women’s participation in the workforce. Oregon’s Working Families Household and Dependent Care tax credit is the main way Oregon supports child care through the tax code.

This tax credit is targeted to low- and middle-income Oregonians. About 90 percent of the tax credit goes to families in the bottom 60 percent of Oregon’s income distribution, a rare progressive tax benefit. As such, most of the resources help families earning below $57,000 per year.

The resources help parents – particularly mothers – generate income for their families through work.

We urge you to approve HB 2440 and extend Oregon’s Working Families Household and Dependent Care tax credit.