A recent proposal to give a tax credit to stay-at-home parents is certainly hard for any politician to oppose. However, it seems to be more of a feel-good approach that will have little real financial benefit for families.
House Speaker Lance Cargill, R-Harrah, has proposed giving stay-at-home parents a credit on their state income taxes of nearly $100 per child.
He is proposing the tax credit as a way to put stay-at-home parents on equal footing with parents utilizing daycare when it comes to tax policy. Parents with children in daycare already receive a tax credit.
Stay-at-home parents and working parents have been at odds for several years now when it comes to tax or government policy.
Many stay-at-home parents contend they face financial hardships by making the choice for one parent to stay at home instead of going into the work force.
We’re sure this is true. It makes sense that most middle-class families who make the choice for one parent to stay at home with children would face some financial hardships that working parents may not face.
Instead of really making a financial difference, it appears this kind of measure merely fuels the debate when it comes to who is doing a better parenting job — parents who both work or a family where one parent stays at home. It basically is a “fairness doctrine” when it comes to tax policy for parents.
The tax credit as proposed by Cargill would cost the state about $14.2 million in tax revenues.
It seems like a lot of money, but it’s really a drop in the bucket when you consider the state budget as a whole. So, the additional tax credit won’t harm budget coffers. And, every dollar not going out in taxes helps individuals and families.
But, let’s not pretend this measure is a really big tax break for stay-at-home parents.
What would help parents more than anything would be sales tax exemptions on child-care products, such as diapers, baby food and children’s clothing.
Those kinds of exemptions would help families more than any tax credit for having your child in daycare or for keeping your child at home.
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