Given low fertility rates, companies that provide daycare should get large tax breaks.
I don't want to post spoilers here, but the inverted population pyramid is going to result in some interesting times.
Anyway, politicians could always loosen immigration. More people = bigger economy, higher wages for the rest of us, and generally immigrants have higher fertility rates. Somehow neither party wants to acknowledge this.
(yes, the above would come with inflation too—this can be reclaimed pretty easily from the top of the wealth pyramid with taxes.)
Not by much, it's only higher in the origin country afaik.
> yes, the above would come with inflation too
Growing the economy isn't inflationary.
> this can be reclaimed pretty easily from the top of the wealth pyramid with taxes
Rich people don't contribute to inflation as much because they have lower marginal propensity to consume. You need to combat demand-side inflation by taking money away from everyone else, and supply-side inflation by increasing production.
It is if you provide a route to citizenship for ~16M americans, many of which are not making minimum wage.
> Rich people don't contribute to inflation as much because they have lower marginal propensity to consume. You need to combat demand-side inflation by taking money away from everyone else, and supply-side inflation by increasing production.
The goal is to use the inflation to drive a reduction in wealth inequality. If the rich person finds it unfair, I'm sure they can find something to mop their tears with.
Hmmm, I think it more counters a deflationary trend of older local people retiring. It is true that people earning more is likely inflationary (but that's better than all alternatives).
> The goal is to use the inflation to drive a reduction in wealth inequality.
Causation would go the other way round. Wealth taxes are inflationary, insofar as taxes are paid in USD and so you have to sell your assets to get the USD, causing extra transactions. That's a problem since most other kinds of tax are deflationary.
[0] https://www.bls.gov/news.release/famee.t04.htm
[1] https://www.census.gov/library/stories/2023/11/child-care.ht...
No, tax deductions help higher rate taxpayers more, but "tax breaks" is a more broad/relaxed term that includes tax credits. Tax credits benefit everyone who files taxes and meets the criteria for the credit.
> It would generally be better for the government to provide daycare
Eh, that is kind of a wholly different argument. In some ways the credit is obviously better (maybe it frees up one partner who wants to to stay-at-home parent), and it can be used more flexibly than a government-provided care program, even if you assume arguendo that the government program would be good and/or good value.