Assessing President Trump's Child Care Proposals

24 Pages Posted: 1 Nov 2017 Last revised: 29 Jan 2020

See all articles by Lily L. Batchelder

Lily L. Batchelder

New York University School of Law

Elaine Maag

Urban Institute

Chye-Ching Huang

University of Auckland; Center on Budget and Policy Priorities (CBPP)

Emily Horton

Center on Budget and Policy Priorities (CBPP)

Date Written: October 30, 2017

Abstract

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

Batchelder, Lily L. and Maag, Elaine and Huang, Chye-Ching and Horton, Emily, Assessing President Trump's Child Care Proposals (October 30, 2017). National Tax Journal, 70(4), 759–782 (December, 2017). Available at SSRN: https://ssrn.com/abstract=3062318 or http://dx.doi.org/10.2139/ssrn.3062318

Lily L. Batchelder (Contact Author)

New York University School of Law ( email )

40 Washington Square South
New York, NY 10012-1099
United States
212-992-8156 (Phone)

Elaine Maag

Urban Institute

2100 M Street, NW
Washington, DC 20037
United States

Chye-Ching Huang

University of Auckland ( email )

12 Grafton Rd
Private Bag 92019
Auckland, 1010
New Zealand

Center on Budget and Policy Priorities (CBPP) ( email )

820 First Street, NE 510
Washington DC, 20002
United States

Emily Horton

Center on Budget and Policy Priorities (CBPP) ( email )

820 First Street, NE 510
Washington DC, 20002
United States

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