Clinton Child Tax Credit Proposal
 

by Allan Carlson, Ph.D. & David Blankenhorn, Ph.D.

In an audacious political dare to Congressional Republicans, President Bill Clinton proposed in his State of the Union address to help stay-at-home moms and dads. He called for a tax credit of up to $500 per child, age one or younger, to help the traditional one-earner family meet the financial costs of bringing new life into the world.

This break from the Democratic orthodoxy of "day care for all" immediately roused suspicions among the Congressional majority. During 1998, after all, Republican advocates for "universalizing" the existing child care tax credit—so that parents-at-home would enjoy the same tax relief as parents purchasing commercial child care—faced implacable White House opposition. Is this new plan merely a feint, designed to confuse and divide social conservatives during the Impeachment Trial?

Perhaps so. But it might also be seen as a serendipitous opportunity, where the bitter divides between "right" and "left" on family policy issues might be overcome.

In some respects, the Clinton initiative is very modest. The benefit would be means tested, going only to low and low-middle income families, and delivering even to these families an average of only $178 in net tax relief.

All the same time, the idea represents an important philosophical breakthrough. It recognizes that bearing a child within responsible homes is, in and of itself, a positive act, and that all child-rearing parents, not just those using commercial day care, deserve tax relief. Moreover, all young families would benefit from expanded child care choices: "two-career" families, which could choose to give more time to infant care without losing a tax benefit, just as much as traditional "one earner" families, which now only get a stiffer Federal tax bill.

Moreover, the Clinton initiative is in line with a January 13 statement, "A Call for Family Supportive Tax Relief," issued by a coalition of scholars and writers spanning the ideological spectrum. Specifically, the document calls, among other things, for reform of the dependent care tax credit, "making it available on a non-discriminatory basis to all families with young children." It is signed by figures such as Cornel West, Professor of Afro-American studies at Harvard University, Wade Horn of the National Fatherhood Initiative, Professor Steven Nock of Harvard University, and columnist William Mattox, former Vice President of The Family Research Council.

Importantly, the statement concludes: "…on the left, many of us recognize that the enduring problems of poverty and economic inequality are unlikely to diminish so long as divorce and unwed childbearing continue at…historically high levels. On the right, many of us recognize that if families continue to fragment, leaving a host of important and unmet social needs in their wake, government is almost certain to become larger, not smaller or more limited."

Whatever the President’s motivations, and whatever his personal fate, this new proposal should be celebrated as an important cultural and political event. Rather than grumbling, Republicans should immediately call his dare, and raise the policy ante. They could urge that the credit for at-home care be available to all taxpaying families, and they could argue for raising the maximum age for children covered to four or five. All American families would be the winners. 

 

 

 

 

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