American Enterprise Institute: “In his economic speech yesterday, Donald Trump suggested an outline of his childcare plan: allow parents to fully deduct the average cost of childcare spending from their taxable incomes.”
“One problem with this approach is that in 2015, according to the Tax Policy Center, about 45% of all taxpayers had zero or negative individual income tax. In other words, a large fraction of low and middle income taxpayers already have no tax liability, so providing them an additional deduction on their taxable income to further reduce their tax liability is unlikely to have any impact.”
“If this deduction is not capped, the benefits of this policy will likely be concentrated among upper-middle and higher income taxpayers, who can already reduce their tax liability with the Child Tax Credit and the Child and Dependent Care Credit.”
“Since those with higher incomes are more likely to itemize deductions than lower income taxpayers, tax credits would more effectively help low income taxpayers. Even so, unless tax credits are made refundable, they are unlikely to bring any additional benefits to lower income households who already pay no tax.”
A lot of people need childcare to help them when it comes to being able to work properly and such. Sometimes people just don’t have enough time to be able to pick their children up from school as they have to work. When this is the case, the question is well what does a parent have to do? Obviously they need childcare, but with Trump’s proposition he hasn’t really helped them. Some people look to hiring nannies to help them. Whilst others might consider getting an au pair to help them. A lot more people are becoming an a pair, as this offers them the experience of going to a new culture and learning a new language. If this is something that you are interested in, then you might want to have a look at something like Cultural Care Au Pair to help show you how you can apply. However, one thing is for certain though, that whenever a parent needs to get childcare. It certainly won’t be cheap.