A new tax plan introduced by Sen. Orrin Hatch (R-UT), chairman of the Senate Finance Committee, includes a proposal by Sen. Deb Fischer’s (R-NE) for paid family leave, known as the Strong Families Act.
“I am thrilled Chairman Hatch adopted my paid family leave proposal in his tax reform markup. This is a big step toward enacting the first nationwide paid leave policy in U.S. history,” Fischer said.
Fischer said the goal of the Strong Families Act is to balance the workplace challenges of employers with the needs of working men and women.
“By encouraging flexible work arrangements, this proposal would allow workers to take leave on an hourly basis so they could care for a sick child or take an elderly parent to a doctor’s appointment. It also would cover maternity and paternity leave for biological and adoptive parents,” Fischer added.
She said its targeted for lower-to-middle income and hourly workers. It establishes a 25 percent tax for the costs of providing paid leave benefits. There is a limit on the salary-level eligible for the tax credit. This would expand access to paid family leave for workers who currently don’t have it.
A recent study by Pew Research found that 87 percent of Americans favor this solution for paid leave.
“This concept would change the game for many newborn babies and their parents, allowing them the time they need to bond and establish a nursing routine without as much of the stress and guilt they face today,” said Alison Ritter, an employee at Applied Systems, Inc. in Lincoln, Nebraska. “It would provide families with the financial support they need in order to do what’s best for their family, but also help businesses that struggle with putting a plan in place due to the financial burden extended absences create. Failures in the family unit are the root of many of our problems in this country, and I believe anything we can do to help families get off on the right footing will manifest in long-term benefits. In this case, the employee gets the time they need and the employer bears less burden. Our country wins when we focus on and invest in healthier families.”
Eric Dinger, CEO of Powderhook in Lincoln, said the approach is workable and wouldn’t provide a disincentive to hire anyone.
“This bill will encourage more companies to give workers paid time off, which will make it easier for parents to take care of sick children, and workers to assist with aging parents as well as attend to their own health issues,” Carrie Lukas, vice president, Independent Women’s Voice, said. “We applaud Senator Fischer for taking this approach, which focuses on encouraging private action, rather than creating a one-size-fits-all government solution or mandate that often backfires on the people we most want to help.”