Trump’s Child-Care Plan May Fail to Reach Low-Income Americans
- Tax-deductible savings accounts are key part of nominee’s plan
- ‘If you’re low income, it’s not like you can float $1,200’
Little People, Big Bills: The Rising Cost of Childcare
Republican presidential nominee Donald Trump’s plan to help families cope with child-care costs has the potential to trim household bills, but low-income workers are unlikely to realize the full benefits and some people could be discouraged from joining the labor force.
The billionaire businessman’s proposed child-care savings accounts will be tough for poor Americans to take advantage of because they’ll have difficulty coming up with the tax-deductible contributions. Stay-at-home parents will receive the same tax deduction as working parents, the campaign said Tuesday, a policy that raises questions about the incentives to join the labor force amid a drop in the participation rate over the past decade.