Friday, January 23, 2015

Untaxed household labor

Here's an excellent post from Josh Barro on Obama's proposed childcare tax credit for "working" parents... in quotes because of course all parents work, inside and/or outside the home. Barro's point is that we don't tax home labor, so in fact the tax system provides an incentive at the margin for parents to stay at home. A perfect little lesson in Beckerian economics, and even with some back-of-the-envelope data analysis. Nice.

No comments:

Post a Comment