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What insurance premiums are they paying? What is their average utility bill for electricity, for heating, for water, etc.? Are they paying rent on the premises? Staff are not getting one third of the $375/hr in take-home pay, but have you considered the gross pay not the net (which includes tax etc.)? Maybe US taxes work differently and there isn't the equivalent of PAYE, but employers must have to pay payroll taxes of some sort. That's the minimum staff ratio, but in practice you would want to have 2 to 12 (so e.g. if one staff member is dealing with taking kids to the bathroom, or on a break, there's someone in the room looking after the rest of the kids). Parents have to provide packed lunches, but does the daycare provide snacks and drinks (something that can be part of regulations, though if it really is run out of someone's home, maybe not required)?
It's not simply a matter of "aha, here is a sackful of money that I can just cream off" unless it's a scam. And as has been noted in different comments, you can't get money from the government for looking after your own kids in your own home. If Susie and Betty and Jane arrange that Susie minds Betty's kids, Betty minds Jane's kids, and Jane minds Susie's kids so they can apply for government funding, that may not work as they'll have to explain why Susie can't mind her own kids if she can mind Betty's kids etc. It's really not just as simple as "rack in thousands from the government". You have to apply for this funding and that can mean a lot of hoops to jump through, which is why cases like Minnesota do require co-ordination and corruption to succeed on the large scale.
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