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Progressivity of Childcare Tax Policies inBelgium

Published online by Cambridge University Press:  17 August 2016

Maria-Isabel Farfan-Portet ,
Jean Hindriks  and
Vincent Lorant
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Abstract:

In Belgium, families with young dependents receive tax reliefs depending on the type of care used. In this paper weanalyze the Federal government policy that allows families using formalchildcare to deduct their expenses out of their taxable income. For familiesusing parental and informal care, a tax credit is grantedfor each child under three years old. We find that tax deduction ofchildcare expenses is a progressive tax policy among the users of formal daycare. On the contrary, when considering all families with young dependentsthe tax policies for childcare are regressive.

Résumé:

Résumé:

En Belgique, les familles ayant des jeunes enfants reçoivent différentesréduction d’impôts selon le type de garde utilisé. En effet, le gouvernementFédéral octroi d’une part, une déduction fiscale des frais de garde pour lesfamilles utilisant des milieux d’accueils agréés (garde formelle) et d’autrepart, une exemption d’impôts pour les familles utilisant un autre type degarde (garde informelle ou parentale). Ce travail montre que les politiquesfiscales en matière de garde sont progressives parmi les utilisateurs de lagarde formelle, mais régressives pour l’ensemble des familles ayant desjeunes enfant.

Keywords

child careequityfiscal policyH71H24petite enfanceéquitépolitiques fiscalesH71H24

Information

Type
Research Article
Information
Recherches Économiques de Louvain/ Louvain Economic Review , Volume 74 , Issue 2 , 2008 , pp. 143 - 165
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 2008 

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Footnotes

*

Health Sociology and Economics, School of Public Health, Université Catholique de Louvain, Brussels, Belgium. Mailing address: Farfan-Portet Maria-Isabel, School of Public Health, Université Catholique de Louvain, Clos Chapelle aux champs 30.41, 1200 Brussels Belgium. Phone: +32 2 764 3098, Fax: +32 2 764 3031 e-mail: maria.farfan@uclouvain.be

Funding: Ministère de l’Enfance of the Belgian French Community.

**

CORE, Université Catholique de Louvain, Louvain-la-Neuve, Belgium.

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