11. The needs of women will have a low priority when compared to those of children and families. The needs of women as compared to those of men will be viewed as irrelevant.

12. In times of economic growth or national emergency, day care services and government funding will expand. In times of economic restraint and high unemployment, day care services and government funding will decline.

13. As day care services expand, there will be more work available for women, as day care service providers.

14. Women will continue to make do with whatever day care arrangements they can obtain with the resources at their disposal.

We now move on to consider specific governmental policy which has a bearing on day care services. There are many such policies, all of which cannot be presented here. We have selected a sample for your consideration.

1. Income tax deductions can be made for day care expenses up to a maximum of $1000 per year per child, with a family maximum of $4000. When we consider the average costs for day care shown in Table 9, we must conclude that this deduction in no way covers the full cost of day care services. The deduction is made from earned income before the tax rate is applied. Therefore, it provides the greatest benefits for those in the highest income ranges. According to the 1975 tables, an extra $1000 deduction was worth $274 to a person with a taxable income of $5000, and $429 to a person with a taxable income of $20,000. The Royal Commission on the Status of Women recommends that this policy be changed so that day care expenses be dealt with as tax credits rather than tax deductions. Tax credits are deductible from the amount of tax to be paid.

^1. L. Dulude, "Background study on women and the personal income tax system", Paper prepared for the Advisory Council on the Status of Women, Ottawa, 1976, p. 5.