Subsidized Day Care: Meager Income Levels

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Subsidized Day Care is a Necessity Over the years meager income levels have cause people to require assistance from the Government. The need for government subsidies is abundant and in order to move families from welfare to work, it is going to cost a little money. Qualifications for the subsidies currently provided should be revised to include the working poor. Poverty can be reduced but only if there are sufficient resources provided. The Government should subsidize day care costs to help reduce poverty. Meager income levels have cause families to require assistance from the government. In the current economy, for a family of two, the poverty guideline has been set by the government at $14,570 per year which is equivalent…show more content…
A report made by Sherwin Rosen in 1997 stated “subsidies of child care services lead to a substantial misallocation of resources that slows economic growth.” (Aslaksen, Koren, & Stokstad, 2000) Rosen also believes “taxes and subsidies distort market prices, leading to inefficient allocation of goods and services.” (Aslaksen, Koren, & Stokstad, 2000) To continue subsidies, taxes have to be increased in other areas, such as goods and labor causing a loss of demand and supply. (Aslaksen, Koren, & Stokstad, 2000) Elimination of the subsidies would not only affect those receiving it, it would force a parent to withdraw their child from a day care center. (Mortini, 2009) Day care centers would be forced to scale back their business and eventually lay off employees. More loss of business would cause the centers to close, forcing more people on unemployment and welfare which tax payers pay. (Mortini, 2009) “Each unemployed citizen is a stone in the pond. Ripples become waves and waves become tsunamis. Then we all drown.” As stated by a single mother facing the elimination of the subsidy. (Mortini, 2009) Child care subsidy is not as people believe it to be. (Mortini, 2009) It is not tax payers’ obligation to pay for the care of others children; however any help given to keep people paying taxes makes a stronger economy. (Mortini,…show more content…
(Scrivo, 1998) The bill imposes a time limit of 5 years on benefits. After an individual has been on welfare for 5 years the benefits are eliminated. (Scrivo, 1998) Funding has been set aside for families that are at 110% to 165% of the federal poverty level. (Benson, 2009) Of the help that is distributed people must meet certain qualifications to continue to receive benefits. (Scrivo, 1998) A family of three with both parents working full time at minimum wage, also known as the “working Poor” would not qualify for government subsidies. (Scrivo, 1998) States are given the responsibility of determining the qualifications as well as the responsibility of determining how much is disbursed to each family. (Scrivo, 1998) Monies distributed are based on income and number of children. (Benson, 2009) According to the AZ Department of Economic Security, a family of 2 would have to earn $1926 a month or less in order to continue receiving the government subsidy. (AZ Department of economic security, 2009) If the day care co-payment at $1926 is equivalent to what DES would pay, no subsidy would be given as the income would put you at the higher income bracket. (AZ
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