Editor’s Note: The views expressed in this blog post are those of the author and do not necessarily reflect that of The Hamilton Project.
James Ziliak is a recent author of a Hamilton Project proposal on reforming the federal Child and Dependent Care Credit to better support low-income workers.
The President proposed a massive investment in our nation’s young children and working families in his 2016 budget released today – through a combination of expanded tax credits and direct subsidies for child care.
The rising cost of child care in the United States over the past two decades has far outstripped the overall increase in inflation. When coupled with stagnant wages among those in the low- and middle-income classes, child care for many working families can erode anywhere between one-sixth and one-third of annual earnings, depending on state of residence.