Elizabeth Warren’s Free Child Care Plan Would (Very Conservatively) Cost $700B – NTK Network Elizabeth Warren’s Free Child Care Plan Would (Very Conservatively) Cost $700B

Elizabeth Warren’s Free Child Care Plan Would (Very Conservatively) Cost $700B

Sources say the plan would cost $700 billion in new spending over 10 years. But that figure goes way up if Warren’s assumptions about the economy & her wealth tax don’t pan out.

By NTK Staff | 02.19.2019 @10:15am
Elizabeth Warren’s Free Child Care Plan Would (Very Conservatively) Cost $700B

Sen. Elizabeth Warren (D-MA) is expected to unveil a “sweeping plan for universal child care” on Tuesday, according to the Huffington Post. At its core, the plan offers “federal funds to providers that offer care at their facilities on a sliding income scale.”

Sources who spoke to the Huffington Post shared these details:

No family would have to spend more than 7 percent of its household income on child care, no matter the number of kids. Families with incomes below twice the poverty line, which is roughly $50,000 a year for a family of four, would pay nothing.

Only providers that meet federal safety, staffing and curriculum standards could qualify for the funding.

But the plan is not cheap. According to the Warren campaign’s estimates, it will likely require $700 billion over 10 years. That’s at least four times what the federal government currently spends on early childhood programs. But that estimate is a very conservative one:

But, the sources said, the campaign has an internal analysis that shows the initiative will likely require approximately $700 billion in new federal spending over 10 years. That is a net figure, taking into account higher economic benefits of early childhood investments, such as making it easier for new parents to return to work.

To offset the cost of the initiative, the sources said, Warren will propose using revenue from her proposal for a new tax on wealth.

In short, Warren is claiming that economic gains from parents returning to work will help bring down the cost of her program to $700 billion, meaning the actual cost is much higher.

To make matters even more tenuous, her campaign is claiming that she would offset some of the costs with her proposed wealth tax – a proposal that is unlikely to pass Congress and unlikely to stand up to a constitutional challenge.

As Warren makes this plan official, keep an eye on what the Massachusetts Democrat says to address these concerns.

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