A new report from the U.S. Congress Joint Economic Committee Minority warns that the lack of affordable child care could cost the U.S. economy as much as $329 billion over the next decade. The report finds parents often wait up to two years for a slot while care averages $13,184 annually per child, forcing workforce exits, reduced hours, and missed work that increase turnover and lower productivity. It highlights three underused federal tax incentives—the 45F employer-provided child care tax credit, the Dependent Care Assistance Program, and the Child and Dependent Care Tax Credit—noting that only 13% of private-sector workers receive child care benefits and less than 1% of corporate returns claimed the 45F credit in 2016. A bipartisan bill led by Senator Maggie Hassan and Senator Dan Sullivan would create an IRS liaison to boost awareness. The committee says every dollar invested in employer-sponsored child care returns an average of $2.90 in business benefits, citing examples such as Patagonia’s 100% return-to-work rate for new mothers and Etsy where 82% of employees say child care benefits influenced their employer choice.
Etsy, Inc.Article cites Etsy where 82% of employees say child care benefits influenced their employer choice, implying potential for increased demand for Etsy's platform if child care benefits improve workforce participation.
Article cites Patagonia's 100% return-to-work rate for new mothers as an example of child care benefits' business returns, but Patagonia is private and not publicly traded; impact is ambiguous for public investors.