That is changing.
Buried in the Trump tax plans are changes to the individual tax code that favor married couples with children.
Donald Trump's Tax Plan Would Hit Single Parents Hard
hree major changes make Trump’s plan particularly hard on single parents.Remember the child care tax credit? Turns out everyone may get it:Trump Child Care Tax Deduction Has Nothing to Do with Child Care
First, he would eliminate the head-of-household filing status, thus requiring single parents to file as individuals. By itself, that boosts tax rates for single parents at most income ranges.
Second, although Trump would boost the standard deduction, he would eliminate personal and dependent exemptions, raising taxable income for all single parents who do not itemize. Under current law in 2017, a single parent with one child can take a $9,400 standard deduction and two $4,100 exemptions, thus reducing her taxable income by $17,600. Trump would replace that combination with a $15,150 standard deduction, making $2,450 more income subject to tax. And bigger families would get hit even harder—their taxable income under Trump’s plan would go up by $4,100 for each additional child, relative to current law.
Finally—and most consequentially—Trump would collapse the current tax schedule from seven rates to three. That may seem less complicated but it would actually raise rates at some income levels. The result: Higher taxes for many heads of household. For example, in 2017 a single parent with one child who claims the standard deduction would face a 25 percent tax rate on adjusted gross income (AGI) between $53,050 and $68,550, compared with just a 15 percent rate under current law.
The amount would be pegged to the average cost of child care in your state (the national average is $12,000 per year per child), and can be claimed for up to four children. It is disallowed (apparently in a cliff cutoff) at $500,000 for a married couple and $250,000 for all others.In other words, the law might encourage middle class and wealthy families to have more children. Single parents will be hit, and some single childless people may also see some tax burden shifted their way.
Here’s the rub: the deduction is available both to families who enroll their children in child care and those who do not.
Currently, the dependent deduction is $4000 per child. Applying the national average for child care costs ($12,000) increases this de facto to $16,000.
When combined with the $4000 personal exemption, the $12,600 standard deduction, and the child tax credit, most families of four would face no income tax on their first $60,000-$70,000 of earnings.
That’s the story from the Trump announcement, not anything having to do with child care costs. He has proposed a big tax cut for families with kids which is of limited help to the very poor (their taxable income is already $0), is a good amount of help for median/middle class families, and is a pretty large windfall for all but the wealthiest parents in America.
In other words, it's a eucivic change to the tax code.
Get ready for a battle royale with progressives and GOP cucks over these changes to the law.