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That’s a problematic definition of in the workforce- in the US 32-47% of people filing tax returns have 0 or negative income tax liability. Paying payroll taxes
by topkai22 7y ago
That’s a problematic definition of in the workforce- in the US 32-47% of people filing tax returns have 0 or negative income tax liability. Paying payroll taxes might be a better definition. Regardless, accounting for value provided in “gray market” untaxed like child rearing, in home work, and volunteer work is very hard and subject to a lot of assumptions in economic models. It’s not a complete strawman argument to worry about it when discussing ROI.
Theoretically, we should just grant parents a tax exempt voucher per child every month that is exchangeable for cash or daycare at equivalent rates. That way you aren’t disincentivizing stay at home parents or other familial care (like grandparents or shared part time parenting).