
by James A. Bacon
“If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” So said former President Ronald Reagan in one of his pithier takedowns of government intervention in the economy.
I don’t believe that daycare providers were ever singled out for taxation, but here in Virginia, they certainly have been regulated. Now the cost of daycare is burdensome to many parents of young children. Unsurprisingly, the General Assembly wants to subsidize it.
The legislature passed a bill setting aside $25 million for a pilot project to reimburse businesses that contribute to the childcare costs of their employees, reports WRIC. The bill, supported by groups as diverse as the Virginia Early Childhood Foundation and the Virginia Chamber of Commerce, awaits action by Governer Glenn Youngkin.
Let us posit for the moment that the cost of daycare is a very real social problem. I know because I hear about it from my daughter and son-in-law, both working professionals, who pay burdensome sums for their two children. I can’t imagine how difficult life is for households that lack their means. So, let me be clear, I do not minimize the dimensions of the challenge facing young parents today.
But I’ve lived long enough to see how programs like this proposed $25 million subsidy evolves. The program starts small, as a pilot project. Then it becomes institutionalized. Once the principle has been established that daycare is a “right,” subsidized childcare expands incrementally to encompass more and more families until a $25 million pilot project becomes an entrenched $250 million entitlement.
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