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May 31, 2017

A new approach to childcare tax breaks is needed in order to relieve the financial stress caused by the increasing costs of raising young children, finds a new report from the C.D. Howe Institute. In Tax Options for Childcare that Encourage Work, Flexibility, Choice, Fairness and Quality, authors Alexandre Laurin and Kevin Milligan recommend that moving towards a new refundable tax credit for childcare would generate the social benefits of increased labour-force participation, benefit lower-income parents, and allow for flexible and decentralized childcare choices.

Alexandre Laurin

Alexandre is the Director of Research and leads the fiscal policy program and the pension policy program at the C.D. Howe Institute. He joined the C.D. Howe Institute in 2008 and became Director of Research in 2014. From 1999 to 2008, Mr.

Kevin Milligan

Kevin Milligan is Professor of Economics in the Vancouver School of Economics at the University of British Columbia, and is also affiliated with the C.D. Howe Institute and the National Bureau of Economic Research. Since 2011, he has served as Co-Editor of the Canadian Tax Journal.