Elizabeth Warren will set up a universal child care program funded by "Wealth Tax"



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This proposal marks the second major political thrust of the Massachusetts Democrat to be unveiled this year while she is vying for the 2020 Democratic nomination. Last month, Warren released a plan to "get the job done." wealth tax "for the wealthiest Americans whose net worth exceeds $ 50 million.

According to Warren's campaign, his child care proposal would create a federal program that would establish a network of public centers and family centers. Care would be free for families whose income is less than 200% of the poverty line, or about $ 51,500 for a family of four. Those who earn more pay subsidized fees based on their income, with no household spending more than 7% of their income.

Warren's child care plan would be funded by a portion of the income from his proposed wealth tax. This clearly indicates that the tax proposal – in addition to nurturing broad public support for higher taxes for the rich – is already becoming a major component of Warren's global platform.

The universal child care policy is of personal importance to Warren because she believes her career has almost always slipped due to child care issues.

Over the last seven weeks, Warren has openly discussed – often in a light and disgusting tone – his decision to marry her first husband at the age of 19 and the obstacles she faced with two little children. some time later. She recently described law studies in these circumstances as "the craziest thing in America".

Warren is open to reporters in Las Vegas this weekend, claiming that, when she was a young mother at work, "the child care has almost upset me."

"I still remember very well the day the babysitter resigned and what it was like to scramble to find someone else." And it became even more more difficult since, "said Warren. "Child care is one of those things we need to do for working parents and what we need to do for our children."

Elizabeth Warren proposes a new & # 39; wealth tax & # 39; on the richest Americans

Childcare is a major concern and expense for many families and can prevent some parents – especially mothers – from getting a job. Those who pay for care typically spend $ 7,200 a year, according to Mark Zandi, chief economist at Moody's Analytics, whose analysis of Warren's plan was provided to CNN through the campaign.

Current federal programs are inadequate, he argues. Those who go to low-income families, such as Head Start, receive only a small part of it. Federal tax credits for child care are not enough to cover the costs.

Warren's advisors told CNN that the child care proposal was a good example of what she was referring to when she referred to a "major structural change" on the stump and that she was considering childcare services as a "fundamental right". The senator intends to present other proposals that would be funded by the proceeds of her proposed wealth tax, advisers said. The tax would impose a tax of 2% on the net worth of the United States higher than 50 million dollars and 3% on the wealth superior to 1 billion dollars.

Currently, about 6.8 million children under the age of 5, one-third, benefit from a formal care system, Zandi said. The legislation would bring this number to about 12 million. Childcare expenses for families would drop from about 17% to less than $ 6,000 a year.

The day care initiative would cost the federal government $ 700 billion over 10 years, after taking into account the boost it would bring to the economy, Zandi said.

The proposal "is rapidly raising economic growth," he said. It will give low- and middle-income households more money to spend, as well as more people to work and work longer.

At the same time, Zandi claims that higher taxes on affluent households will have "little impact" on the economy, although Republicans and right-wing economists are convinced that more taxes high costs are detrimental to economic expansion.

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