How does making child care costs tax-deductible reduce the tax wedge associated with the fact that market

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How does making child care costs tax-deductible reduce the “tax wedge” associated with the fact that market work is taxed but home work is not? Does making child care costs deductible increase or decrease social efficiency?

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Public Finance and Public Policy

ISBN: 978-1429278454

4th edition

Authors: Jonathan Gruber

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Question Posted: Apr 25, 2015 07:44 AM

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How does making child care costs tax-deductible reduce the tax wedge associated with the fact that market

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A parent who stays home to care for his or her children receives home production value for providing ...View the full answer

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