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November 1 2016

The Surprising Beneficiaries of Hillary Clinton's Childcare Plan: Rich People

Charlotte Hays

Hillary Clinton has a complicated childcare plan, which would bring more government red tape into the lives of parents, and which would also be a giveaway to affluent families.

Kevin Cochrane explains in the Weekly Standard:

More egregious, affluent families would also get a huge check from the public. Consider a family with an income of $100,000—the lower end of the top 25 percent of all Americans. This household would have an average childcare expense again of about $20,000, but with the Clinton credit, it would receive about $10,000 as an offset against income taxes. Assuming they also only took the standard deduction and exemptions, it would entirely eliminate the family's tax bill. To put this another way, 75 percent of all American households with children and child care expenses would pay no income taxes at all—and most would get an additional check from the government.

Effectively, the outcome of Clinton's plan is to pay almost every family in America roughly $10,000 per year for every child they have, regardless of whether they make a high income. Suddenly, giving birth becomes a profitable enterprise.

And with all of this extra childcare money floating around expect costs to skyrocket. Just like with housing a few years ago and college costs now, overpriced childcare will become another government-created bubble. If you think childcare is expensive now, just watch what happens if this credit becomes reality.

We're all for helping the parents who are bringing up the next generation of citizens.

But there are better, simpler ways to do this (see IWF's plan and the Trump plan).

Eliminating the unnecessary daycare regulations would be a start, and tax cuts for everybody would be another good idea.



Independent Women's Forum is an educational 501(c)(3) dedicated to developing and advancing policies that aren’t just well intended, but actually enhance people’s freedom, choices, and opportunities. IWF is the sister organization of the Independent Women’s Voice.​
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