Child care

Part of the Build Back Better bill contains a provision for government paid childcare. This will allow many non working moms to return to the work force. The cost cannot exceed 7% of the families income. For example a mom working full time at Walmart earning $30,000 per year will pay no more than $2,100 per year per child in childcare. In MN today childcare is $12,000 per year. The cost for this service in the new bill is estimated at $200 billion over ten years but it must be renewed in six years. This was done to keep the ten year cost down. This is a budget gimmick called sunsetting. Once this is law many new babysitting businesses will open up. Since the government will be on the hook for all cost over the family limit of 7% the price will quickly rise. In the example above the mom would pay $2,100 and the government would pick up the difference of $12,000 minus $2,100 or $9,900. In a short time the babysitters will raise their prices since the government is paying. The true cost of this service will be far more than the estimates. Just like what happened with tuition cost when the government starting offering student loans.