A Taxing Time for Child Care Debates
Paul Kershaw, Ph.D.
23 Apr 05

Two recent Vancouver Sun articles caught my attention: one by Michael Campbell advocating new tax cuts for stay at home mothers; the other by Fazil Mihlar claiming that researchers don't know what programs will help families with children because academics like me haven't compared the developmental outcomes that result from tax breaks with those that result from a system of non-familial care.

My response to the two journalists: stick to writing on issues you know more about.

There is large literature from Canada, the US and Europe that shows QUALITY care is good for kids under 6, even if they are getting good care at home, and especially if they reside in families that are vulnerable financially. The Human Early Learning Partnership - a network of academics from across BC universities - has produced a summary of this literature which can be found at www.earlylearning.ubc.ca. I recommend Campbell and Mihlar read it.

The problem, of course, is that Canada doesn't necessarily provide quality care. That's why we need to push for more money for a universal child care system, not less.

Tax break supporters favour this approach in part because they believe it is straightforward. But this is misleading. The value of tax deductions depends on your income and is worth more for higher earners. Knowing what you get relative to your neighbour is therefore not simple. The value of tax credits is equally complicated. The current caregiver tax credit of around $3,600 is worth only about $580 for families. I bet most Canadians couldn't tell you how that amount is calculated.

Worse still, the journalists imply that tax breaks for families address the same public policy problems that a universal system of child care is meant to address. They are wrong.

No one in favour of universal child care thinks parents should be able to shirk responsibilities to care for their kids. Quite the opposite. Defenders of child care recognize that parents want to be with their kids and should be supported so that they have sufficient time to care personally. That is why child care advocates also typically talk about parental leave, other caregiving leaves and work-family balance measures (which might include tax breaks). My own research regularly highlights the need to organize social policy so that men can find and enjoy more time to care.

The reality is, however, that a universal system of non-familial child care promotes social and economic objectives that parental care just can't. Here are a few examples:

First, men's incomes have been declining since the 1970s in terms of purchasing power. Just as much as feminism, this economic reality has pushed many two-parent families to have both partners in the labour force. The National Council of Welfare regularly reports that poverty rates would rise dramatically if women were not earners. Tax breaks big enough to address this trend would cost far more than child care.

Second, Canada, like all countries, is facing a labour shortage because of our warped population pyramid. As babyboomers retire, pressure for mothers to work longer hours will increase, not decrease. The pressure will be especially strong since women typically have more education than men these days, and in a knowledge economy, education matters most. What is needed to unleash this labour supply is a child care system - not tax breaks. Even if you think families can use tax breaks to buy child care, the tax relief that federal Conservatives proposed in the past are not generous enough to pay for good quality care.

Third, all Canadians need to ask "What is so magical about age 6?" Neuroscience and epidemiological research provides evidence that early learning matters for long-term well-being and labour market success. We collectively have an interest in providing stimulating opportunities for kids in social environments so that they enter the formal school system ready to interact with others, learn and eventually work. Starting before age 6 makes sense, because research shows that measures taken after the fact to fix problems that kids develop are much more costly and much less effective. Almost every other wealthy democracy has acknowledged this. Debates in Europe and the UK are about the amount of care to provide kids age 3 and under - it is taken for granted that 4 and 5-year-olds need access to good quality early learning and care environments outside of the home. This international perspective suggests that ongoing resistance to child care in Canada is cultural, not based on science.

The bottom line: there is enough research about child care to permit Canadian governments to make sound policy decisions. Don't let journalists who don't specialize in the area convince you otherwise. They already get enough air time arguing that Canada can't afford a child care system, when what they really mean is they that don't want us to prioritize child care relative to other policy issues. The most recent federal budget included $13 billion for tax cuts, which follow on the heels of more than $90 billion in federal tax cuts over the past five years. Against this backdrop, the proposal to spend $5 billion on child care over five years seems very modest. What are your priorities?

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Paul Kershaw is a Professor of political theory and public policy at the University of British Columbia and the Human Early Learning Partnership. He is the author of the article "'Choice' Discourse in BC Child Care: Distancing Policy from Research" and the forthcoming book Carefair: rethinking the responsibilities and rights of citizenship.