Innovative ways to stimulate the economy: Reform the nanny tax


This is just one of the Innovative Ways to Stimulate the Economy suggested by DailyFinance contributors.

Want to create more jobs and get millions of people who avoid taxes now to start paying into federal and state coffers? How about reforming the so-called nanny tax?

The tax laws around hiring childcare workers are notoriously difficult to comply with and easy to flout. Reforming them would be one small step toward stimulating the economy, but a giant step for household workers and the busy families that can afford to hire them, but find the maze of required paperwork too daunting.