[Former employee of a non-profit organization Clarissa] Doutherd, who lives in Oakland, Calif., with her 4-year old son Xavier, had been able to cover the nearly $1,000 monthly child care bill thanks to a state subsidy that helps lower-income working parents. The support disappeared after budget cutbacks last year.
"In June, I had to quit my full-time job," after her salary was insufficient to cover her child care costs, she said. "I was on the brink of being able to pay the full cost, just another raise away from being completely self-sufficient" (MSNBC).I love a good cliché, and the one that works best here is "penny-wise, pound-foolish." How much money is the state of California saving by cutting childcare subsidies? Better to ask, how much income is the state losing? Now that California forced Ms. Doutherd to quit a full-time job where she was expecting a raise, the state treasury is no longer receiving from her . . .
- Income tax, which would likely have gone up with her raise
- Sales tax, to the tune of 8.75% minus Oakland's cut, on purchases other than groceries, medicines, etc.
- Tolls, which finance road construction and seismic retrofitting of bridges
How long will Ms. Doutherd's household make it before she needs to apply for food stamps, utilities aid, subsidized housing, or some other assistance? Luckily for her, the article appears to state, she has just the one kid, and at age 4 he'll be in full-time school sometime soon. Until then, the household will be treading water and doing absolutely nothing to rebuild the state or national economy, all to save the state under $1,000 a month, on the back of a single mother. Great job, California!