Archive | February, 2012

Tax Breaks for Employing ‘Domestic Workers’ are basically a Good Idea

9 Feb

This is perhaps better suited to Twitter but never mind.

David Cameron’s in Sweden for a conference on ensuring women in business are fully rewarded and is making statements supporting tax breaks for parents who pay for ‘domestic care.’  The BBC reports this as “pay[ing] someone to do the housework.” I can’t work out whether Cameron would want this to apply this to day-care too. He should.

The Labour-supporting commentator Anthony Painter criticised the proposal on Twitter saying:

I think this tax break for ‘domestic workers’ idea goes straight in the box marked ‘married couples allowance’ http://bit.ly/xwxjaK

He’s wrong to make the two comparable. The married couples allowance tried to reward people for getting married and sent out signals that other forms of family structure were wrong. Giving tax breaks for employing domestic workers does not necessarily do that but rather is a good way to encourage people to work if they want to. If it makes going back to work when you want to more affordable then that’s a good thing and to be encouraged.

The plan of course needs some extra work. I’m not sure if the very rich who employ domestic workers anyway really need the extra tax break. As I mentioned earlier, extending the plan to making day-care more accessible would be worthwhile too.

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