Perhaps if we started rolling back the welfare state — and reduced the burden of government on all families that rely on themselves and not the government — more mothers would choose to stay home even if that meant Obama and his ideological heirs would discriminate against them in the tax code.
“The president’s proposal would make the maximum credit — for young children, older children, and elderly or disabled dependents — available to families with incomes up to $120,000, meaning that most middle-class families could easily determine how much help they can get,” says the White House statement.
Most of Obama’s tax proposal are structured to be sold with class-war rhetoric. I.e. He is increasing taxes on the “rich” to help the poor. But that cannot be said of this proposal, which is designed to provide its maxium credit to families making $120,000 a year.
Who would this tax scheme help and who would it hurt?
For starters, an IRS webpage on the Child and Dependent Care Credit stresses: “The care provider cannot be your spouse.” So, one beneficiary is daycare centers.
Compare two families, each with two children under three. In the first family, both the mother and father work full-time and each earns $55,000 per year. Their combined income of $110,000 is under the $120,000 threshold, so Obama gives them his full child-care tax credit. They are happy to take it, dropping off their 1-year-old and 2-and-a-half-year-old at a for-profit daycare center where a relative stranger deals with them during the majority of their waking hours.
In the second family, the mother — who has a college degree and a solid work history prior to the arrival of her children — has decided she should nurture her own children rather than pay a daycare center to hold them. She has given up a $60,000 per year job, and she and her husband now sacrifice and get by on his $58,000 per year salary.
What this mother gives her children for free is far more valuable than what the daycare center gives the children of the first family for a hefty fee.
The first family has an income $52,000 greater than the second. But Obama gives the first family, not the second, his tax credit.