Rep. Sara Jacobs Introduces Landmark Bill to Decrease Her Inheritance to Fund Affordable Child Care
Following Republicans’ passage of a budget that slashes the social safety net for children and families to pay for a bigger tax cut for the wealthiest Americans and biggest corporations, Rep. Sara Jacobs (CA-51) introduced legislation to do the opposite: raise more funds from the estate tax to pay for affordable child care. The LEGACY Act, or the Leveraging Estate Gains for America’s Children and Youth Act, would cut the newly passed federal estate tax exemption by more than half to $7 million and dedicate 15 percent of the generated revenue to address the nation’s ongoing child care crisis. The LEGACY Act, if passed, would decrease the inheritance of Rep. Sara Jacobs – one of the wealthiest Members of Congress – and of her future children.
Rep. Sara Jacobs said: “Wealthy families like mine didn’t build our wealth alone, and we shouldn’t hoard the benefits of success that’s not only ours. I believe it’s our responsibility to fix the systems that worked for us – but leave too many people in poverty or on the edges of poverty while corporate profits and income inequality skyrocket. The answer isn’t what Republicans proposed in their budget: to gut the social safety net so rich people can get a bigger tax break. That’s why I introduced the LEGACY Act, which would lower the estate tax exemption for wealthy people like me so we can give all kids the foundation they need. It shouldn’t be predetermined at birth whether or not a child can grow up happy, healthy, and with endless opportunities – and by expanding child care to all, we can help all kids succeed and build and leave behind their own legacy.”
Erin S. Erenberg, Chief Executive Officer, Chamber of Mothers said: “Chamber of Mothers pools the will of 40 million mothers monthly in 43 state chapters nationwide to urge lawmakers to pass paid leave, affordable childcare, and maternal health legislation. We know that the lack of affordable childcare costs the US economy an estimated $122 billion annually. And yet, the question remains in nearly every Congressional office we visit: How will we pay for it? Congresswoman Sara Jacobs offers a smart, creative, solutions-driven answer. Her proposal would direct 15% of tax revenue from high-value estates toward easing the childcare burden on American families. Time and again, we hear bipartisan interest in using the tax code to relieve the burden on mothers and families. We’re proud to support this thoughtful and innovative approach.”
“With our country facing a child care crisis that’s causing enormous hardship for moms, families, businesses, and our economy, and child care costing more than public college in most states, we urgently need more federal funding to make quality, affordable care available to every family that needs it,” said Kristin Rowe-Finkbeiner, Executive Director and CEO of MomsRising. “Using revenues from estate taxes to stabilize and bolster our child care system – and to make it possible to pay child care workers living wages – would strengthen the child care workforce, allow more moms and parents to hold jobs, help kids thrive, and make it possible for more of us to contribute to our communities. That’s why MomsRising supports the LEGACY Act. We thank Rep. Sara Jacobs for introducing it and urge leaders in both chambers to prioritize its passage. We need measures like this one that support moms and working families, not more tax breaks for billionaires!”
“Since 2017, Trump and his billionaire-backed congressional allies have declared war on the estate tax, limiting its scope and percentage so the ultra-wealthy can funnel millions and billions to their children without paying their fair share of taxes as Congressional Republicans cut healthcare, nutrition, and education programs for middle and working-class children across the country,” said ATF Executive Director David Kass. “We applaud Representative Jacobs for introducing legislation that makes our broken tax code fairer while investing in future generations of Americans.”
The LEGACY (Leveraging Estate Gains for America's Children and Youth) Act would:
- Amend the Internal Revenue Code of 1986 to create an Early Childhood Education Trust Fund through the transfer of 15% of revenue generated from the estate tax
- Require funds to be used as a third revenue source to supplement the Child Care Development Fund
- Require 25% of the trust be used for “stabilization” grants to address the supply-side of the child care crisis
- Adjust and lower the current estate tax threshold to inflation, almost half of what was passed in the Republicans’ budget bill
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