Ivanka Trump has been working on a child-care plan, according to a report in Bloomberg, meeting with GOP members of the House and Senate last week. Unfortunately, her plan, which could cost up to $500 billion over 10 years, would disproportionately benefit wealthy, dual-income families. Besides, the Republican-dominated Congress is unlikely to support such an expensive plan, reports Amanda Arnold.
Almost 50 million full-time workers in the US labor force are women, according to US Census.
The proposed plan permits couples who earn less than $500,000 to deduct the cost of child care expenses from their taxes while lower-income families without tax liability would look forward to a rebate in the form of a larger earned income tax credit (approximately $1200).
“Unsurprisingly, the House GOP leaders did not mention child care in their tax-reform blueprint from June 2016, and therefore, this proposal is not a priority,” says Arnold.
While the Earned Income Tax Credit, says Belinda Luscombe, “has been a very useful economic tool for alleviating hardship… it’s unclear how much more it has to give. Theoretically, once people have got back all their taxes, there is no more they can claim against.” Instead, those wealthy enough to afford their own childcare will benefit the most from the plan’s proposed tax breaks.