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Reply to "How does unpaid labor figure into HHI? "
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[quote=Anonymous]I have been reading some of the threads below, and see some people saying that they spend $20k-40k of after tax dollars on daycare for two children. And that this cost can make what appears to be a fairly high income ($150k) disappear very quickly. The general response is that it doesn’t matter what you spend your income on, only that you have it. But shouldn’t it? If someone in the home is doing $20k-$40k of unpaid, untaxed labor for the family, shouldn’t that count when figuring out the HHI? Arguably, SAHP childcare is more like nanny care, which is considerably more expensive, but that’s hard to argue when someone is caring for their own child. Certainly, every parent is caring for their children some of the time, and we don’t count it as nanny care or babysitter care. But if one person is providing full time childcare, shouldn’t that count for some dollar amount? [/quote]
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