by Leah Libresco Sargeant (@LeahLibresco)
The Republican trifecta has pledged to deliver a pro-life, pro-family victory in this year’s major tax legislation. A baby bonus should be part of that package. It’s a cost-effective way to support parents–whether their baby is planned or not.
A baby bonus is a family benefit payment that goes to parents right after a child is born. In a recent report for the Niskanen Center, I propose a $2,000 baby bonus program that would offer a refundable tax credit. Ideally, this payment would arrive within a few weeks after the baby is born.
While I’d be happy to see the baby bonus modestly boost fertility rates, that is not its primary purpose. A modest payment will have modest effects. The real goal is to help parents have the child they already hope for. When parents welcome a child, they experience a shock to their incomes and their employment. A baby bonus is designed to ease that disruption and help them navigate the turbulence of the first year, post-birth.
