You don’t have to look far to find where Donald Trump got his maternity benefit plan. If Mexico is going to pay for the big, beautiful wall (nobody believes this*), then Canada has supplied the model for Trump’s plan.
1. Help every family with the costs of childcare and eldercare.
2. Empower families to choose the care that is right for their family.
3. Create a new, dynamic market for family-based and community-based solutions.
4. Incentivize employers to provide childcare at the workplace.
5. Provide 6 weeks of paid leave to new mothers before returning to work.
Excluding the costs of child care and elder care from adjusted gross income (above-the-line) is a great idea for families who struggle to put kids through school, and juggle working parents, and elderly grandparents. The limitation of the elder care deduction to $5,000/year is small, but does help make the choice of staying home versus working an easier one.
The Earned Income Tax Credit boost, however, is just welfare, period. Most of those receiving the EITC already pay $0 in income tax; this just hands them an extra $1,200. Who pays for this? Everyone else.
The whole plan reads like a Democratic list of talking points. It really is straight out of Canada.
Trump’s 6-week maternity benefit would come from unemployment insurance. Just like Canada’s. The only difference is Canada provides up to 52 weeks of unemployment maternity benefits. From Trump’s plan:
Providing a temporary unemployment benefit for eight weeks through the UI system would cost $2.5 billion annually at an average benefit of $300 per week. This cost could be offset through changes in the existing UI system, such as by reducing the $5.6 billion per year in improper payments or implementing the proposals included in the administration’s FY 2017 budget regarding program integrity. Providing the benefit through UI—paid for through program savings—will not be financially onerous to small businesses when compared with mandating paid leave.
As Leon Wolf noted, this is horsecrap.
States administer unemployment insurance, and they determine the premiums paid by employers. I guarantee–to paraphrase Ann Coulter, I would die for this–that no state is going to go with the same unemployment insurance rates while funding a federally-mandated maternity plan. This is just another tax on employers, which will be passed on to consumers in every instance.
The population of Canada is less than the population of California. I think it’s great that these kinds of wealth redistribution and social programs work for them. But that doesn’t mean it will work here.
Trump is a tax-and-spend liberal, and he’s out-liberaling Clinton in many areas. But no Republican should take his Canadian rip-off seriously.
*See the Bloomberg poll in Ohio:
Donald Trump has also said he would build a wall along the Mexican border and that he could make Mexico pay for it. Do you think it is realistic or unrealistic that this would happen under a Trump presidency?
2 Not sure