cmerritt87

The Irony of Employment

In Uncategorized on March 1, 2009 at 5:38 am

child-care-pic“One of the key challenges that low-income parents face is the heavy implicit tax imposed by child care. When going to work necessitates placing a child in day care, the parent only receives the difference between his or her salary and day care expenses in return for working. Due to their lower salaries, this burden falls relatively hardest on the working poor. This significantly reduces the net rewards from working. The impact is only partially offset by the fact that current law gives parents a tax credit for up to three thousand dollars of work-related child care” (Joseph V. Kennedy)

Isn’t it amazing that the lowest of American classes can actually lose money from working if they have kids? There has always been great emphasis on providing employment for the impoverished, but it may not always prove beneficial. For instance, let’s say a poor mother has three young kids to take care of. Once she obtains a job (which isn’t likely to be high paying), she will have to pay for child care. If the child care expenses end up exceeding that of her paycheck, is it really worth it for her to work?

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  1. […] The Irony of Employment « Wheel of Misfortune […]

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