Tag: tax credit

David French of National Review and Greg Corombos of Radio America cheer House Republicans for listening to the backlash and reinstating the adoption tax credit into their tax reform bill. They also discuss the allegations of sexual misconduct reported by the Washington Post about GOP Alabama U.S. Senate nominee Roy Moore, and while debate over the veracity of the accusations continues, they are appalled at the number of Republican officials in Alabama who don’t see a problem even if the stories are true. And they groan as Bowe Bergdahl may end up getting hundreds of thousands of dollars in back pay from his time in captivity after deserting his unit and misbehaving before the enemy.

Contributor Post Created with Sketch. Can Republicans Sell Child Tax Credits?

 

Jim Pethokoukis recently put up a post on the child tax credit proposal, which is recommended in the recently released compendium of reform conservatism, Room to Grow. He covers the economic angle and argues that the tax credit qualifies as pro-growth, supply-side economic reform because children are future human capital and because younger societies tend to be more “dynamic, creative and entrepreneurial.”

None of our Ricochet regulars will be surprised to hear that I’m in favor of this. Obviously I have a vested interest because I have three children already and could have more. But I’m pretty sure I’d be in favor in any case. I don’t think it’s unfair because families will still be shouldering a substantial financial burden in order to supply the country with an invaluable resource: future workers. And taxpayers. On average, it costs about $250,000 to raise a child to 18. It can become more economical if you strip out day care fees and whatnot, but then the opportunity cost is higher. One way or another families are still a great “bargain” for the country even if we slightly diminish the average “profit” per child. We invest our national resources in cultivating scientific research, infrastructure, energy, our military, and other valuable projects that we expect to have a future payoff. So why shouldn’t we invest a little more in “cultivating” children, who also bring us future benefits?