Cost Calculation Released for Paid Family Leave Proposal

The Congressional Budget Office (CBO) published a cost-estimate for House Democrats’ paid family leave proposal, the FAMILY Act (H.R.1185), on February 13. The FAMILY Act would provide family and medical leave benefits for eligible people and impose a 0.4 percent payroll tax that would be split evenly between employers and employees.

The CBO estimates that enacting the bill would increase federal spending by $547 billion over the next ten years. The payroll tax created by H.R.1185 would be expected to net around $319 billion in revenue during that period, creating a $228 billion budget deficit.

House Republicans are pointing to this deficit and the additional tax burden on employers and workers as a prime example as to why H.R.1185 will not be accepted as a bipartisan solution on family and medical leave reform. Democrats continue to maintain the position that the potential costs of the proposal are affordable for the country and taxpayers.

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