Assessing President Trump's Child Care Proposals
24 Pages Posted: 1 Nov 2017 Last revised: 29 Jan 2020
Date Written: October 30, 2017
During the presidential campaign, Donald Trump proposed three tax benefits for child care: a credit for low-income families, an above-the-line deduction, and tax-subsidized savings accounts. While these proposals laudably bring attention to the heavy burden that child care costs place on many low- and middle-income families, they are a case study in how not to reform child care policy. They are unduly complicated, arbitrarily exclude certain low-income families, deliver support well after child care payments are due, and provide the largest benefits to higher-income families who need the least help.
Keywords: child care, tax reform, tax expenditures, child and dependent care tax credit
JEL Classification: H2, J13, K34
Suggested Citation: Suggested Citation