Trump’s latest promised tax break is for family caregivers

By CNN Newsource

Published October 28, 2024 10:16 am

By Tami Luhby, CNN

(CNN) — In his latest targeted tax relief promise, former President Donald Trump said Sunday that he’d push for a tax credit for family caregivers.

“I’m announcing a new policy today that I will support a tax credit for family caregivers who take care of a parent or a loved one,” Trump said during his rally at Madison Square Garden in New York City. “It’s about time that they were recognized, right? They add so much to our country and are never spoken of, ever, ever, ever, but they’re going to be spoken of now.”

With just days left in this year’s election season, the former president did not provide any details about the credit – including who would be eligible, how large it would be and whether the cost would be covered. His campaign did not immediately respond to a request for additional information.

Trump’s proposal, which targets an often financially stressed segment of Americans who are typically juggling careers, children and aging parents, comes a few weeks after Vice President Kamala Harris unveiled a measure to have Medicare cover home health care for the first time to provide relief for the so-called sandwich generation.

Both campaigns have sought the label of being “family friendly” as they woo voters struggling with cost-of-living increases. Trump’s running mate, Ohio Sen. JD Vance, has said federal child care assistance measures should also support family members and informal caregivers, in addition to aiding child care centers.

Also, in a section on caring for the elderly, the 2024 Republican Party platform calls for supporting “unpaid Family Caregivers through Tax Credits and reduced red tape,” as well as shifting “resources back to at-home Senior Care.”

The caregiving tax credit is the latest in a series of targeted tax relief measures Trump has unveiled during the campaign. He has also promised to eliminate taxes on tips, Social Security benefits and overtime pay, as well as to make interest on car loans fully tax deductible.

Costly caregiving

More than 48 million Americans are caregivers to parents, spouses and other loved ones, providing about $600 billion in unpaid care annually, according to the AARP. Caregivers often assist with preparing food, paying bills and conducting activities of daily living, as well as with arranging medical care and medications.

Family caregivers shell out more than $7,200 annually, on average, to care for loved ones, AARP research has found.

Providing a tax credit to caregivers isn’t a new idea. Earlier this year, a bipartisan group of lawmakers reintroduced the Credit for Caring Act, which would provide up to a $5,000 credit for eligible working family caregivers. It would help offset the cost of home aides, adult day services, home modifications, assistive technology, transportation and other needs.

Harris’ Medicare at home plan

The vice president’s proposal calls for Medicare enrollees to be independently evaluated to determine whether they cannot handle activities of daily living, such as bathing, eating or going to the bathroom, according to a fact sheet issued by the Harris campaign. The vast majority of seniors could continue living at home with an average of 20 hours or less a week of care provided by an aide, the fact sheet said.

Medicare would provide coverage for those with modest incomes, while seniors with higher incomes would share in the cost, according to the campaign.

Covering home health care, however, could be very expensive. One recent estimate from the Brookings Institution for a “very-conservatively designed” program, which would cover those unable to perform two activities of daily living and would require enrollees to share part of the cost, would have a price tag of about $40 billion a year. The Harris campaign cited the Brookings research as a building block for the vice president’s proposal.

To cover the cost, Harris said she would expand Medicare drug price negotiations. Increasing drug discounts from manufacturers, implementing international tax reform and other measures would also help pay for the program.

CNN’s Kate Sullivan contributed to this report.