Correction to the above:
Having re-read the proposed legislation, I have noticed that there is going to be no subsidy for those above 65k$/year who fail the test; I guess that group is going to be the biggest loser from this reform.
Overall, it still looks to me like a positive redistribution, though (not in the sense of fairness, but in terms of number of families benefitting vs number of families losing), therefore it is not obvious to me how this would be detrimental to expected revenue for childcare operators.
Any other views?
Activity Test, page-4
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