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No, the argument is that the program increases GDP because more women with children are participating in the labor force. A portion of that increase is collected in taxes, and if that amount happens to be the same or larger than what the government spends on childcare, the program "pays for itself".

Non-parents are not subsidizing parents in this scheme. And if the additional amount collected in taxes is greater than the cost of the program, then parents are subsidizing non-parents.

If you cancelled the childcare, the GDP increase would disappear, so the increase in tax revenue would disappear, and you wouldn't be able to reduce the tax rate.



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