A Financial Reason To Say No To The Feds Involvement With Daycare [Video]

It all sounds so easy. Congress votes to give families with children a federal tax credit to offset the rising costs associated with daycare.

Let's see how a harmless little pebble morphs into a mountain. A year or two down the road, a suspected molestation occurs in the made-up hamlet of Shankhammer, Minnesota. Congress comes to the rescue with a series of regulations.

Not surprisingly, another incident happens. Our country has fifty states. It’s reasonable to fathom there will be other accidents, non-compliance with insane regulations, poor judgement and crimes against defenseless kids. The Departments of Education and Health and Human Services team up to declare that research reveals parents need high quality-daycare centers. In order for these centers to be high-quality, the nation will now institute a certification process. The dumb parents now feel secure.

Naturally, certification stipulates diaper changing courses, how to warm a bottle, what to do if a child cries, how to fill out the new mandatory paperwork and of course the operator will need to take and pass a series of tests to get their Certificate of Completion. Now, the operator is certified. I'm feeling better now. Government has made the kids safe, until the next incident. Remember Bridgewater State University? Yes, they are certified!

The daycare operator chimes WOW" I paid a lot of money for this certification, I need to pass these costs on to the end user—the parent. The increase nullifies, actually increases out of pocket daycare. The original tax credit is wiped out. Parents complain. Government steps back in. The cycle continues all because a minority of parents have trouble making some difficult and important life decisions.

How can we put the brakes on the pebble transitioning from stone to rock, into a boulder then stretching to mountain status? Here’s an interesting concept. Instead of silly tax credits and government controls, why not force state and federal governments to slash taxes and their spending, so parents will have the funds to afford the daycare of their choosing. On a percentage basis, I trust parents more than government officials!

If you think I'm off, try this easy little test. Look at your paycheck--the gross pay. Add up your total expenses for federal and state taxes, Social Security and Medicare. Now, calculate these with holdings into your weekly and monthly totals. Divide the with holdings by two.

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