Originally Posted by Cat Herder:
Where will this tax break be funded from, though? 
IME, giving young parents a break that equates to more available income does not change their priorities. How many of us have given free childcare to help out a family "in need" only to have them buy big screen TV's, gaming stations or I-Phones then post about it on Facebook? I have.
I don't think this will trickle to childcare providers. Maybe it will benefit the retail and service industry as a whole. That may benefit our local economy by association. Unless, of course, the source of the funding comes from our seniors of other groups who actually put in the hard work and deserve it.
This would be better answered by Tom Copeland or your accountant. In order to get the deduction, a parent would need to spend the money on childcare. Parents would have to spend money in order to get the money back. It offers parents the ability to now spend more on the childcare, since they can deduct more. That’s how I am reading it.
How we pay for it or any expenditure is in the model that is put forth by Congress. We added a extra $10 trillion to our debt the last eight years. You can decide if it was well spent or not. Our GDP was pretty stagnant during that time around 2 % per year. Every point that it goes up, adds $3 trillion into the economy per year (says Wilbur Ross, current United States Secretary of Commerce.). We were pretty well tapped out with $20 trillion in debt but with the current GDP rising per quarter, it should allow for more headroom to borrow and spend. The coming budget bill has to still be approved but I think the added money flowing into the economy will give Congress reason to approve and pass it.
GDP (Gross Domestic Product) Defined:
https://www.thebalance.com/component...-chart-3306015
http://www.bushcenter.org/publicatio...r-america.html
https://www.cnbc.com/2017/09/26/tax-...-gdp-jump.html