The US Department of Finance admitted that the National Child Care System is “inoperable”, as it is subject to failures in the market mechanism. In the report, information from which cnbc leads, it is noted that many parents face financial difficulties and cannot afford quality care for children.
One of the reasons for the “inoperability” of the system is that parents should ensure their departure to children at a time when they are least able to do this due to mortgage and learning debts. From the report of the Ministry of Finance, it follows that the high level of child care is positively appeared on the lives of citizens and improve the economy as a whole.
The Ministry of Finance wants to introduce paid family leave, universal pre-school education and significant tax breaks for parents and dependents. At the same time, the Democratic Party works on the preparation of the bill on social spending, which will be included in the US President Joe Bayden by 3.5 trillion dollars. According to the Democrats of the House of Representatives, the country’s leader’s project will need to spend 450 billion dollars on subsidiaries and child care for low-income families. The national holiday program will cost about $ 500 billion.
Democrats also advocate the permanent expansion of tax benefits for dependents worth almost 100 billion dollars. The largest cost of expenses is the extension of an increased tax discount on children until 2025. According to estimates, the measure will cost $ 550 billion for a decade.
The scale and cost of programs caused republican attacks who accuse Democrats in trying to strengthen state control over the life of Americans. “We must focus on the hardworking taxpayers can provide the best care for their children. You can not blindly spend money on the problem and call it a decision”, “said the member of the Republican party Virginia Fox.
According to recent polls, children care programs in the democrats’ expenditure package are widely popular. The Bayden plan is 3.5 trillion dollars already approved by the Chamber of Representatives, and now the US Senate must be taken. However, not all financiers agree with the effectiveness of the plan: researchers concluded that the project can hit the US economy.