Jump to content

Quebec's universal government daycare brings in more money (in income tax from working moms) than it costs to provide

Recommended Posts



In another win for government social services (provided in an efficient and equitable manner), Quebec's government-subsidized, low-fee daycare has brought in more tax revenue than it has cost to provide:



Early estimates anticipated the program would generate 40 percent of its costs via increased income taxes from working parents. Instead, it generated income taxes to cover more than 100 percent of the cost. “In other words, it costs zero, or the cost is negative,” Fortin said. “The governments are making money out of the program.”


“The program is paying for itself,” Fortin said. “The increase in the number of young women in Quebec’s labor force has generated such a return in terms of taxation, taxes back into economies in social benefits, and fewer families depending on social benefits, which in turn increases government savings.”



“Since beginning the program more than two decades ago, Quebec has seen the rate of women age 26 to 44 in the workforce reach 85 percent, the highest in the world.”



Another recent study from Statistics Canada compared Quebec to fellow Canadian province Ontario, which hasn’t adopted an expansive program like Quebec’s, found an even more dramatic increase in workforce participation of almost 20 percent for moms with a child younger than 3 over a similar time period. It also found that the overall fertility rate increased, even as more women were working.


So if you want to:


  • Get more women in the workforce
  • Increase fertility rates
  • Collect more tax revenue
  • Provide well-run daycare


Then just provide near-free daycare run by the government. Think this proof will convince other jurisdictions in North America to do the same? Yeah right.


EDIT - It is $8-$21/day for parents in the program (scales based on income) vs around $40 in the rest of Canada for private daycare.



Link to comment
Share on other sites

7 minutes ago, sblfilms said:

Encouraging parents to farm their little kids out to low wage baby sitters is great policy.


Well the better alternative is to have a universal income system so that people can stay at home and care for children themselves. But we are far from that as a society. Canada does provide a 12-month or 18-month parental leave covered by the government (usable by either parent), which is pretty good and will likely be expanded this year by the government.


But unless a parent is fully-covered to not work at all (and stay home and raise their kid), it is simply not financially feasible for parents to not work. Some families can afford it...but the vast majority cannot. And those who can afford it are going to be financially well-off couples. Single parents can't do it under almost any circumstance.

Link to comment
Share on other sites

Also, studies have shown that children in the government spaces have better development than those in private spaces that are subsidized:



For those kids who are in Quebec’s public programs, known as centres de la petite enfance (CPEs), “repeated studies have found sharp improvements in child development,” Fortin said. This accounts for about one-third of Quebec’s children in care right now.



  • Like 1
Link to comment
Share on other sites

To be fair, the rest of Canada has the Universal Child Benefit, which provides up to $533/mo for every child under 6, and $450/mo for children between the ages of 6 and 17. The idea is that this money is used for childcare and the like. The benefit is tax-free and goes to every family in the country with children. Childcare falls under provincial jurisdiction so the federal government can't directly subsidize daycare, so this is their alternative. Most people likely use it as extra money toward their general expenses, but it does help offset some of the costs of raising a child.

Link to comment
Share on other sites

10 hours ago, Snaynay1 said:

I wish we had a system like Japan. My kid went into Japanese school all day when he turned 2 and we paid 200 a month for that. In the states it was about a grand a month for just daycare.

That's awesome. Our entire system is so out of date. School, healthcare, retirement, it's all cowboy wild west. 

Link to comment
Share on other sites

21 minutes ago, Jose said:


You joke, but a significant portion of our population thinks we are the only country in the world that has freedoms and it makes me sad.

Here in America, I know I'm free because I can stop paying thousands of dollars in health insurance premiums and risk bankruptcy and destroy the only chance I have of financial stability, employment, or housing. Europe pays higher taxes, so that's how I know they're not free.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    • No registered users viewing this page.
  • Create New...