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Originally Posted by Antikarma
uh, which is why I brought up the issue. Molly the single mom can't afford to take her child to daycare, so she has to stay at home with the child, forcing her onto social assistance and the like. A program that lessens child care costs to the point of affordability not only reduces the social costs of having to support someone, but creates revenue income by taxing an income that would otherwise not exist.
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If Molly can't earn more at a job than it costs to put her child in daycare, why shouldn't the government 'hire' Molly to take care of her child? It is cheaper than hiring the daycare. In a way, Molly is more productive taking care of her child than she is working?
Admittedly, to make the 'someone else taking care of your child' completely tax-friction free, the cost has to be tax deductable and the income child care people earn has to be tax free. This looks something like a subsidy?