Childcare cost

The child care portion of the Build Back Better bill is estimated to cost $270 billion. The average cost of child care in Minnesota is $1,200 per month per child. Under the proposed bill the consumer would pay no more than 7% of their income in child care and the government would pay the rest. If you have two children your child care cost is $28,800 per year and your cost would be no more than 7% of your income, so if you earned $20 per hour you would pay $2,800 for child care. This plan will lead to higher charges for child care but the consumer would not be effected by higher fees. The actual cost to the government will be much higher than the forecast of $270 billion. For example look at what happened to Medicare and medicaid. Here is an article from 2013. “Nearly 50 years ago, at the time of Medicare’s enactment, it was projected that the federal government would spend $9 billion on Part A hospital services in 1990. Actual spending in that year totaled $67 billion—an increase of 644% compared with initial estimates. “Likewise, government officials originally projected that Medicare Part B physician services would require ‘federal appropriations of about $500 million a year from general tax revenues.’ Last year, the federal outlay for that program was $163.8 billion—overshooting the original estimate by more than 4,400%.”