The 1988-90 debate ended up with modest tax credits for children. That is a lot of new money in the pockets of 27 million families with 45 million children. Then, Congress expanded the Earned Income Tax Credit to reach 15 million people, giving significant extra help to workers of very modest incomes. The Child and Dependent Care Tax Credit is in addition. The Republican Congress also voted a tremendous increase in daycare spending as part of the 1996 welfare law.
Tax cuts are the best way government can help families cover the costs of raising children.