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 daycare facilities. The government could significantly increase enrollment in local daycare 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?