High Taxes and Regulatory Costs create Childcare Crisis in Australia

Posted by PITHOCRATES - August 5th, 2012

Week in Review

Parents can’t return to work quickly enough in West Australia after having their babies.  Because they can’t afford to be stay-at-home parents (see Working parents struggle to find carers for children by Rhianna King posted 8/1/2012 on The West Australian).

WA’s childcare sector is at breaking point, with critical shortages forcing parents to cut back their work hours or resort to hiring nannies…

Debbie Mashford, from Goodstart Early Learning in Edgewater, said the shortage was partly the result of more parents returning to work sooner…

The association is calling for a 30 per increase in the childcare benefit for parents of under-threes, which they claim would encourage more parents back to work and allow centres to fund more places…

Federal Minister for Early Childhood Kate Ellis said the Government wanted to remove the obstacles to longer opening hours at childcare centres.

“So many parents have the stress of having to ensure they rush out of work by ten past five to get through the traffic and collect their children by 6pm,” she said.

I never attended any childcare.  My dad worked.  And my mom worked longer hours at home raising the family.  The childcare issue is masking a much bigger problem.  Why can’t families survive these days on a single income?  And the answer to that is, of course, higher taxes.  And higher regulatory costs on businesses.  All of which have raised prices.  While shrinking take-home pay.

All of this results from increased government spending.  That’s the problem.  They add new bureaucracies to government.  Requiring more tax revenue to fund them.  New regulatory policies increase the cost of business reducing the number of employees they can hire.  Leaving more people dependent on government benefits.  Which is more government spending.  Paid for by higher taxes.  And then there’s the carbon tax.  The biggest boondoggle of them all.  Which just hammers power plants.  Increasing the cost of electricity.  Increasing everyone’s electric bill.  Both consumers and businesses.  Requiring further subsidies to those who can’t pay their electric bills.  And then there’s the carbon tax on the consumer’s utility bill.  It’s just all too much.  And the reason why West Australian families can’t make it on a single income.

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