WASHINGTON, D.C. – U.S. Representatives Peter Meijer (R-MI) and Suzanne Bonamici (D-OR) today introduced legislation to end a large, unnecessary tax deduction for business meals and redirect the estimated $5 billion in savings to support childcare for American families. The Choosing Healthy Investments and not Lunch Deductions (CHILD) Care Act would repeal a temporary rule, known as the “three martini lunch deduction,” which increased the business meal and entertainment deduction from 50 percent to 100 percent. The Joint Committee on Taxation projects that doubling this deduction will cost more than $5 billion over 2022 and 2023. The CHILD Care Act would end the increased deduction and redirect the projected savings to the Child Care and Development Fund.
“The COVID-19 pandemic presented major challenges for hardworking parents in West Michigan and across the country,” said Rep. Peter Meijer. “Now, more than ever, we need to increase access to affordable childcare. The full 'three martini lunch deduction' is not the most effective use of taxpayer dollars, and it’s time we repurpose these funds. Directing these resources to the Childcare Development Block Grant, which has long been underfunded, would give more childcare options to the families who need it most. I'm glad to join Congresswoman Bonamici in this critical bipartisan effort.”
“We should be using federal dollars to meet the needs of working families, not for a needless tax break,” said Rep. Suzanne Bonamici. “The Child Care and Development Block Grant Program has been underfunded for many years, and the historic demand for affordable childcare makes it critical to increase funding for this essential program. I’m grateful to be working across the aisle with Congressman Meijer to support working families and increase access to childcare.”
The legislation is endorsed by the Baxter Community Center, Bipartisan Policy Center, Center for Law and Social Policy, Child Welfare League of America, Institute on Taxation and Economic Policy, Low Income Investment Fund, National Women’s Law Center, New America's Early and Elementary Education Policy Program, and ZERO TO THREE.
“It is imperative that strong investments are made into Early Childhood Education. These investments allow more families to have access to childcare, support the teachers that we depend on to prepare our little ones for kindergarten, and ensure the safety and development of this critical workforce. Covid-19 has revealed to our country the significant role childcare plays in our day-to-day infrastructure, and the unquestionable truth is, this nation couldn't function without the many women and men that provide high quality care for our little ones daily while parents enter the work force. Greater investments into the Child Care Development Block Grant program will allow centers like Baxter Child Development Center to provide a much-needed raise to our teachers, as well as make it possible to provide scholarships to parents who do not qualify for childcare subsidies. These investments are critical to families across the state. “ – Aarie J. Wade, Director of Education, Baxter Community Center
“The Bipartisan Policy Center applauds Representatives Meijer and Bonamici for their creative work to provide childcare to more children and families through the Child Care and Development Block Grant. The Choosing Healthy Investments and not Lunch Deductions (CHILD) Care Act of 2021 would add more than $5 billion to CCDBG without increasing the federal deficit, helping more families around the country get back to work and ensure our economy can thrive. We thank Reps. Meijer and Bonamici for working across the aisle on behalf of children and families.” – Linda Smith, Director, Bipartisan Policy Center's Early Childhood Initiative
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