"The first part of my childcare plan allows every parent or family in America – including adoptive parents and foster parent guardians – to deduct their childcare expenses from their income taxes," Trump said in his speech in the town of Aston on Tuesday night.
Under Trump’s new plan, parents will be able to fully deduct the average cost of child care for their state against taxes from birth through the age of 13, he added.
"For low-income individuals who have no net income tax liability, we will offer an expanded Earned Income Tax Credit (EITC) in the form of a childcare rebate… that equals up to half of their total payroll tax – a major relief for low-income parents," Trump stated.
This would translate to as much as an extra $1,200 in EITC benefits for working families, he explained.
All US parents will also be offered the option of opening up accounts for their children with the first $2,000 in them tax-free.
"Our plan allows every parent in America to open up a Dependent Care Savings Account," Trump said. "Families can contribute up to $2,000 a year to these accounts completely tax-free."
Unlike the flexible spending accounts that already exist in the United States, the accounts will be available to all Americans, Trump explained.
"For low-income individuals, the federal government will provide matching funds – if parents contribute $1,000 dollars, the federal government will provide a $500 matching figure," he added.
Donald Trump also offered six weeks paid maternity leave for all new mothers as part of the family care reforms he unveiled in a speech in Aston in the US state of Pennsylvania.
"By recapturing fraud and improper payments in the unemployment insurance program, we can provide six weeks of paid-maternity leave to any mother with a newborn child whose employer does not provide the benefit," he said.
The maternity leave will be paid straight out of the unemployment insurance fund and the cost will be covered by savings within the program, he added.
Trump said his plan would also include incentives for more US employers to offer on-site childcare as well.
"Currently, only seven percent of employers provide the services. Our plan will expand tax deductions for employers, allowing companies to pool resources to provide shared childcare services," he stated.
Trump's Democratic opponent, Hillary Clinton, has promised 12 weeks parental leave for mothers and fathers and has said she would pay for it by increasing taxes on wealthy Americans.
