Democrats introduced a bill Tuesday to provide tax credits for child care, along with universal paid family and medical leave and permanent extensions of child and family tax credits.
House Ways and Means Committee chairman Richard Neal, D-Massachusetts, led the other Democrats on Congress’s tax-writing committee by introducing the legislation, known as the
Democrats are introducing the bill ahead of President Biden’s address to a joint session of Congress on Wednesday evening, when he is expected to unveil his own proposals for expanding aid to families during the pandemic as part of his American Families Plan, funded by proposed increases in the top income tax rates for the wealthy, capital gains tax rates and an end of the step up in basis for estate taxes. The Biden administration is also working to pass its infrastructure plan, known as the American Jobs Plan, which is funded by increases in the top corporate tax rate.
Democrats on the Ways and Means Committee see their bill as building on those efforts in the eventual post-pandemic economy.
“Our economy is premised on the idea that some workers are worthy of ‘perks’, like paid leave or affordable child care that works for their schedules, while the majority are forced to fend for themselves. For our economy to fully recover from this pandemic, we must finally acknowledge that workers have families, and caregiving responsibilities are real,” Neal said in a statement. “Through sensible, but bold investments, we can put workers’ minds at ease and ready our country to come roaring back, all while lifting millions out of poverty by permanently extending the hugely popular expansions the Ways and Means Committee made to key tax credits in the American Rescue Plan.”
The
The bill would also increase funds for the Child Care Entitlement to States program and index the funds so they could grow with inflation and the child population. It would also establish a Child Care Information Network for parents and caregivers so they could learn the latest information about available child care slots that meet their needs within their local community. It would create a new Worker Information Network to help workers access paid leave, unemployment insurance benefits, and child care. In addition, the legislation would Invest $15 billion in the physical infrastructure of child care facilities.