Ending Hunger in America, 2014 Hunger Report Full Report | Page 79

CHAPTER 2 economic impact. Although they objected initially, employers soon accepted the new law as they saw the benefits of increased employee productivity, satisfaction, and retention.53 The British law has now been expanded to cover family caregiving needs beyond child care—for example, caring for a disabled spouse. Children in low-income families are more likely to have chronic health problems. One reason families become poor is that when a parent is forced to choose between keeping a job and caring for a sick child, she or he generally opts to take care of the child. Federal standards that require paid sick leave and paid family and medical Figure 2.6 Poor Families Spend a Larger Share of Their Income leave would go a long way toward on Child Care helping parents—and all workers— 40% manage their work and family responsibilities. 35 Child Care 35.9% 30 More and more parents—57 percent in 2010, up from 49 percent 25 just four years earlier—describe 20 child care as an economic neces20.3% 54 In theory, families with lower sity. 15 incomes can get federal childcare subsidies, but currently, only one 10 in six families that qualify actually 8.9% 7.9% receive this support.55 A number 5 of studies show that subsidized 0 childcare enables more mothers to All families Below 100-199 200+ work, especially full-time, and that with children poverty percent of percent of subsidies reduce poverty.56 The under age 5 level poverty level poverty level Child and Dependent Care Tax Source: Heather Boushey and Jane Farrell (2013), “A Woman’s Agenda for the 21st Century: Credit, a nonrefundable credit, A Dozen Policies to Promote Economic Security for Women and Their Families,” Center for allows eligible families to deduct American Progress. Authors’ analysis of U.S. Census Bureau data. up to 35 percent of the cost of care from their taxes, but most low-income families are ineligible because they don’t earn enough to owe income tax. If the credit were refundable, like the Earned Income Tax Credit, anyone with earned income who pays for child care would be eligible for it. The annual cost of full-time care for an infant in a childcare center ranges from $4,600 in Mississippi to $15,000 in Massachusetts, according to the National Association of Child Care Resource & Referral Agencies.57 The high cost of care puts it out of reach for many families, especially those who earn too much to qualify for a subsidy but not enough to pay for high-quality care themselves. After paying for child care and other expenses associated with working, they may find they have little if anything left over. When both parents are working in low-wage jobs, they may be able to eke out a living without cutting back on their food consumption or resorting to emergency services such as a food pantry or soup kitchen. On one income, however, that is extremely difficult. There is not a single U.S. state where a couple www.bread.org/institute? ? 2014 Hunger Report? 69 n