Maybe it's not wise to comment on this while living in Germany and never having been to SF.
But my first thought was: Are they gonna shuttle the kids in and out of the city in order to provide said childcare? Or the staff? How would the staff afford housing in SF on a "normal" salary? Where would they build the required buildings when land costs an arm and a leg?
> Are they gonna shuttle the kids in and out of the city in order to provide said childcare?
The city itself is tiny, this is not the metropolitan area of San Francisco, its just the city limits, so yeah people in suburbs will commute into the city to work there, just like most other people working in San Francisco.
There's also great (by American standards) public transit into/through the city. Caltrain and BART can get you into SF quickly from quite a large area nearby.
Income cliffs, even phased, are generally stupid. See Britain's 100k cliff for free childcare. If both parents make 99k, you get it. If one earns 101k and the other earns zero, you don't get it. The workaround (pension stuffing) is widely known and actually means the govt comes off worse than if they'd just given the childcare away.
There are all kinds of other perverse effects like people turning down promotions or dropping down to working 4 days a week. It's a government-sanctioned ceiling on ambition for high earners. Genius.
I am also confused by cliffs. Maybe someone more knowledgeable than me could explain why you would ever want them for something like this instead of just having higher progressive tax rates for well off people to make up for it. Naively I would think that that’s significantly easier from and administrative point of view too.
I suspect that the policy is popular with the 90% of voters in the UK who earn less than £80k and that politicians are not very concerned with the ambitions of the rest of us (frustrating as that is when paying London rent).
When I first read it I thought wait, 3% of 6 is 0.18, but then I realized no I'm a dork because 6 is the age of the kid, whereas the number 100 is written as a word hundred, hence I decided to write "HN poster responds:" with quotes around my first non-coffee aided thought because I thought it was funny. I guess I should have just made that full statement, but I do have a tendency to rather oblique communication strategies.
on edit: basically because I thought hah, this is the kind of mistake I always see poor tired folks make on HN and making the dumb comment and here I am making it!! This is a classic moment!
We have 30 hours of free childcare in the UK (for nursery, schooling in older years is free) if both parents are working and neither earn more than £100k. It has the interesting impact that a salary of £99.9k is worth more to me than £130k, give or take some extra contributions to pension.
It’s interesting to me that the threshold is so much higher in San Francisco given that SF is only 8.7% more expensive than London, at least according to numbeo.
Maybe healthcare makes up some of that difference?
So now making 231k makes you worse off than someone making 230k? Why even have that threshold when it doesn't even exclude that many people, it just causes weird incentives.
The article also mentions a 50% subsidy up to $310,000. The details aren’t spelled out, but subsidies like this often phase out gradually to avoid a cliff at the threshold.
Probably because in order to get it passed they had to have some cutoff because there was some people who would argue against it being free for everyone.
That sounds like a good way to keep moms out of the workforce.
I know a lot of couples who feel like the wife's job is a hobby, because after taxes it barely covers childcare (especially if you also value spending time with your kids).
Free childcare could free those households up to decide which parent(s) work when. Instead, by capping it below a common dual income, it incentivizes the least earning parent to continue to stay out of the workforce.
Threshold based benefits decreases numbers of parents who work though, why have that threshold when its that high? If a couple can get free childcare by the wife working part time instead of full time they absolutely will, that is the effect the threshold gives you.
I don't follow. Wouldn't the high cost of childcare make couples less likely to have 2 incomes, because the lower-earning spouse is working for lower marginal pay, just to pay someone ELSE to provide child care?
I think he is talking about the threshold effects. E.g if one partner earns 200k then it could make more sense for the other to stay at home than to work and earn say 50k or 70k. The 50% subsidy above 230k reduces that issue but I would rather see no cap.
You framed this issue in a certain way, but your position could be described as „lower earning families need to pay for childcare, so higher earning families keep producing two incomes”. Not so attractive anymore.
> I know a lot of couples who feel like the wife's job is a hobby, because after taxes it barely covers childcare (especially if you also value spending time with your kids).
When described that way ... aren't they right about the wife's job?
Maybe it's not wise to comment on this while living in Germany and never having been to SF.
But my first thought was: Are they gonna shuttle the kids in and out of the city in order to provide said childcare? Or the staff? How would the staff afford housing in SF on a "normal" salary? Where would they build the required buildings when land costs an arm and a leg?
> Are they gonna shuttle the kids in and out of the city in order to provide said childcare?
The city itself is tiny, this is not the metropolitan area of San Francisco, its just the city limits, so yeah people in suburbs will commute into the city to work there, just like most other people working in San Francisco.
There's also great (by American standards) public transit into/through the city. Caltrain and BART can get you into SF quickly from quite a large area nearby.
The staff in my baby’s London nursery all live outside of London.
Edit: or are very young and live with their parents.
Income cliffs, even phased, are generally stupid. See Britain's 100k cliff for free childcare. If both parents make 99k, you get it. If one earns 101k and the other earns zero, you don't get it. The workaround (pension stuffing) is widely known and actually means the govt comes off worse than if they'd just given the childcare away.
There are all kinds of other perverse effects like people turning down promotions or dropping down to working 4 days a week. It's a government-sanctioned ceiling on ambition for high earners. Genius.
I am also confused by cliffs. Maybe someone more knowledgeable than me could explain why you would ever want them for something like this instead of just having higher progressive tax rates for well off people to make up for it. Naively I would think that that’s significantly easier from and administrative point of view too.
I suspect that the policy is popular with the 90% of voters in the UK who earn less than £80k and that politicians are not very concerned with the ambitions of the rest of us (frustrating as that is when paying London rent).
In this case, it strikes me as a bad idea because there are advantages to having people - both parents and children - mix across income-levels.
this won't cost the city too much, there's only like a hundred kids under 6 in this city and 3% of them are mine.
HN poster responds: "You have 0.18 kids under 6! That seems unlikely!"
Am i missing the joke? ChatGPT tells me 3% of 100 is 3, not 0.18.
When I first read it I thought wait, 3% of 6 is 0.18, but then I realized no I'm a dork because 6 is the age of the kid, whereas the number 100 is written as a word hundred, hence I decided to write "HN poster responds:" with quotes around my first non-coffee aided thought because I thought it was funny. I guess I should have just made that full statement, but I do have a tendency to rather oblique communication strategies.
on edit: basically because I thought hah, this is the kind of mistake I always see poor tired folks make on HN and making the dumb comment and here I am making it!! This is a classic moment!
You’re missing something if you asked ChatGPT that.
No, they have their irony fully deployed, not missing anything.
.18 is 3% of 6. This might mean something, but I don't know what.
10 months out of six years is 0.14 so it isn't quite prenatal benefits.
What happens if an unborn baby has rights to go to preschool, but the birthing parent can't?
Is an unborn child a US citizen yet?
the next number in the sequence 3, 6, 18 is 72, but I doubt it means anything.
nah, it just means you get 18% of childcare costs paid.
We have 30 hours of free childcare in the UK (for nursery, schooling in older years is free) if both parents are working and neither earn more than £100k. It has the interesting impact that a salary of £99.9k is worth more to me than £130k, give or take some extra contributions to pension.
It’s interesting to me that the threshold is so much higher in San Francisco given that SF is only 8.7% more expensive than London, at least according to numbeo.
Maybe healthcare makes up some of that difference?
nice to see the city supporting the lower class.
a year, I assume
Okay now do everyone
So now making 231k makes you worse off than someone making 230k? Why even have that threshold when it doesn't even exclude that many people, it just causes weird incentives.
The article also mentions a 50% subsidy up to $310,000. The details aren’t spelled out, but subsidies like this often phase out gradually to avoid a cliff at the threshold.
So now you are better off making 310k than 311k, is that much better? It doesn't matter how you read it you still get that effect.
No at 310k you get $1 dollar at 311k you get $0. But you know like you have 999 more dollars than before. Assuming Post tax income.
Where did you read that? It says you get 50% up to $310k, that very clearly means if you make $310k you get 50% off.
> Officials to offer 50% subsidy up to $310,000
These subsidies can be implemented in a way where they taper off instead of imposing a hard cliff.
They can be, but the article says they aren't.
Probably because in order to get it passed they had to have some cutoff because there was some people who would argue against it being free for everyone.
“Free”. Presumably tax payer funded in actuality.
That’s generally how good governments work yes.
We'll get the super wealthy in California, like Larry Page and Sergey Brin, to pay for it. Oh wait, they just left.
That sounds like a good way to keep moms out of the workforce.
I know a lot of couples who feel like the wife's job is a hobby, because after taxes it barely covers childcare (especially if you also value spending time with your kids).
Free childcare could free those households up to decide which parent(s) work when. Instead, by capping it below a common dual income, it incentivizes the least earning parent to continue to stay out of the workforce.
That's some convoluted logic. The data shows the opposite. Free/cheap childcare significantly increases the number of parents who work.
https://childcarecanada.org/documents/child-care-news/11/06/...
Threshold based benefits decreases numbers of parents who work though, why have that threshold when its that high? If a couple can get free childcare by the wife working part time instead of full time they absolutely will, that is the effect the threshold gives you.
While I too disagree with the cap I think you are a bit blinded by working in tech. A lot of double income households do not reach 230k.
I don't follow. Wouldn't the high cost of childcare make couples less likely to have 2 incomes, because the lower-earning spouse is working for lower marginal pay, just to pay someone ELSE to provide child care?
I think he is talking about the threshold effects. E.g if one partner earns 200k then it could make more sense for the other to stay at home than to work and earn say 50k or 70k. The 50% subsidy above 230k reduces that issue but I would rather see no cap.
You framed this issue in a certain way, but your position could be described as „lower earning families need to pay for childcare, so higher earning families keep producing two incomes”. Not so attractive anymore.
So basically a return to what was the norm from ~300,000 years ago until 1975?
Sound the alarms.
We also had slavery, no advanced medicine, no education for most people, and an average lifespan of about 30. Amazing how selective nostalgia can be.
Letting the other 50% of the population make the same life choices is a good idea in my opinion.
We can all go nomad and berry-picking anytime, then.
> I know a lot of couples who feel like the wife's job is a hobby, because after taxes it barely covers childcare (especially if you also value spending time with your kids).
When described that way ... aren't they right about the wife's job?
The subheading says "Officials to offer 50% subsidy up to $310,000" which hopefully addresses your point there.