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Under current federal law, employers are allowed to offer [#permalink]
26 Jul 2007, 15:11
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Under current federal law, employers are allowed to offer their employees free in-house daycare as a tax-free benefit, but they can offer employees only up to $400 per year as a tax-free benefit for their children’s enrollment in local day care facilities. The government could significantly increase enrollment in local day care facilities by raising the limit of this benefit to meet employee’s costs.
Which of the following, if true, indicates that there is a major flaw in the argument above?
(A) local day care facilities are not always as fully outfitted as in-house day care facilities.
(B) enrollment in local day care facilities is better for the child because he or she becomes acquainted with neighborhood children with which the child will eventually attend school.
(C) the in-house day care facilities offered by employers as tax-free benefits can be worth as much as $2,800 per year.
(D) many employees are deterred by financial considerations from enrolling their children in local day care facilities.
(E) because of last minute changes in working hours, it is often easier for employees to have their children in an in-house day care than in one located close to home.