Boston, MA. – FEBRUARY 8: Richard Neal, Chairman of the US House Ways and Means Committee, speaks at a press conference at the State House on February 8, 2021 in Boston, Massachusetts.
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The Democrat, who heads the main tax writing committee in the House, will come up with a list of priorities on Tuesday aimed at bringing broad new benefits to working parents and families.
Rep. Richard Neal, chairman of the House Ways and Means Committee and gatekeeper to the new tax law, will outline investing in what Democrats refer to as “human capital.”
Neal’s big ticket bill is called the “Building an Economy for Families Act,” a law that provides for universally paid family and sick leave of up to 12 weeks and about two-thirds of a worker’s wages is worth.
The bill would also introduce a new refundable tax credit on wages paid by certain childcare facilities of up to $ 5,000 per year and a new childcare information network to give parents and guardians real-time information about childcare available.
If passed, the tax credits introduced in President Joe Biden’s $ 1.9 trillion Covid-19 bailout package would be permanently expanded, including the child tax credit, the earned income tax credit, and the tax credit for Children and dependent care.
House Democrats have expressed their special support for the freeze on the expanded child tax credit passed under the US rescue plan.
This top-up loan, which will go to families from July, provides up to $ 3,600 per child through 2021, depending on the age of each child. Without additional legislation, the extended loan should only be valid until the current year.
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Neal’s bill could bring him into conflict with the president, who has so far expressed doubts about his chances of success in a 50:50 split in the Senate. Biden is expected to try Wednesday to convince lawmakers to support his American family plan, which would extend the increased child tax credit through 2025, but not extend it indefinitely.
Separated from the US infrastructure-based employment plan, this bill contains measures designed to help US workers learn new skills, expand childcare subsidies, and make tuition fees free for everyone at Community College.
National Economic Council director Brian Deese on Monday defended a plan to increase capital gains tax on the country’s richest households to help pay off the president’s plan. Last week, several news outlets reported that the Biden government will seek to raise the tax to 39.6% for households with an annual income of $ 1 million or more.
CNBC’s Ylan Mui asked Neal how he was going to pay for the never-ending loan and the rest of the law to build a family economy, and if he would help raise the tax rate on capital gains.
“We wanted to develop a design and then we’ll look at sales,” he said. “But treat this as an economic investment. This is about increasing productivity. This is about increasing stability in our homes.”
– CNBC’s Ylan Mui contributed to this report.