American Enterprise Institute, February 1, 2016: Childcare costs: Yet another way we’re failing the poor
“The cost of childcare has grown tremendously in the United States over the last few decades. According to a survey by Pew research, for high-income families, childcare costs could average about 7% of income, while for low-income families, they could be as high as 40% of income. To offset these costs, certain provisions exist in the tax code, such as the Child Tax Credit and the Child and Dependent Care Credit. Programs like the Earned Income Tax Credit are also more generous towards families with children. In addition, states use block grants to provide subsidized day care centers and other subsidies to help low-income families meet these costs. Despite these provisions, cross-country comparisons by the Organization for Economic Cooperation and Development show that the U.S. is an outlier when it comes to the use of informal sources of care, such as grandparents or babysitters.”