Claire McCaskill knows that it's the middle class that drives economic growth and that's why she believes we need an economic policy that will help everyday Missouri families. Claire will fight in the Senate for a tax code that helps families attain the dream of buying their first home, balancing work and family, and paying for college. The tax code should create opportunity and hope for Missouri's middle class, not the special interests with lobbyists in Washington.
Homeownership is the largest form of wealth for most Missourians. Claire wants more people to share the American Dream of homeownership by helping aspiring homeowners break into the housing market.
A National Association of Realtors survey found nearly one in three Americans worry that the cost of housing is so unaffordable that they will never be able to buy a home, and that 57% of Americans worry that their children won't be able to afford housing in their communities. Missouri home prices are on the rise. Since 2003, Kansas City median single-family home prices rose from $144,000 to $159,000, while St. Louis home prices rose by $30,000. Claire wants to help first-time homeowners share in the prosperity generated by rising housing values. [National Association of Realtors, 2006; National Association of Realtors, 6/27/06]
CLAIRE'S PLAN
Providing affordable and quality child care helps middle class families balance work and family, ensuring that no working parent will have to choose between their job and raising their children right. As the mother of three children, Claire understands the challenges that many of our families face and will fight to make quality child care more accessible to Missouri's families.
Annual fees for child care average from $4,020 to $14,225 -- often exceeding the cost of tuition at Missouri's universities. Federal law allows Missouri parents to apply for the dependent care credit, which provides a tax break on a percentage of their child-care expenses. The amount of the tax break depends on a family's income: low-income families can get a break on up to 35% of child-care costs, whereas families making more than $43,000 only get 20%. As a result, the maximum tax credit for most middle-class families with two or more kids is only $1,200. Claire would fight for a more generous child care credit to help our families successfully balance work and family. [IRS, Tax Tip 2006-46]
CLAIRE'S PLAN
Getting a college degree is a key component to helping Missouri's students achieve their dreams. The median salary of a college graduate is about 60% higher than that a high-school graduate, and over the course of a lifetime, Missouri college graduates will earn at least $1 million more. But college education keeps increasing in cost. In Missouri, since 1999, the average public university tuition in Missouri has risen over 70%, and private university tuition has risen nearly 45%. And with many books now costing more than $100, college students and their families are facing huge bills on top of tuition costs. [The College Board, "Education Pays: Update 2005;" Chronicle of Higher Education, as of 2005-2006; NPR, 7/25/06]
Up until 2005, the tax laws allowed families to deduct up to $4,000 in tuition and other qualified expenses. The Republican Congress and President Bush let the credit expire in 2005, in order to fund tax breaks for millionaires. The tax law still provides a variety of other credits for higher education, including the Hope Credit and the Lifetime Learning Credit. These programs have confusing rules and eligibility requirements, and because taxpayers can claim only one credit at a time, taxpayers have to compare the relative benefits of each program -- a burdensome task. Claire's plan for higher education would ease this burden and lessen Missouri students' debt and allow them to more easily pursue their goals and aspirations. [Washington Post, 5/11/06; U.S. Dept. of Education]
CLAIRE'S PLAN