In a simple model of day care enrollment and labor supply, we have shown that in countries like Sweden where wages are taxed at about 60\%, the government's tax revenue, net of day care subsidies, is likely to be maximized with subsidies covering more than half of day care costs. In contrast, in...

This paper seeks useful conditions relating individual preferences to willingness to support specific governmental tax-expenditure proposals. This discussion follows Wicksell in considering only tax-expenditure proposals that specifically tie expenditures to taxes that finance them.