September 14, 2018
A joint report from the American Enterprise Institute and the Brookings Institution recommends Congress enact a federal program to provide eight weeks of paid parental leave that could be funded with a payroll tax of up to 0.6 percent of total wages.
The report identifies a number of principles Congress should follow, including making sure the program “covers all workers, regardless of how employment is structured,” “covers a wide range of care-based needs, has “minimal disruptive effects on employers,” and can be funded "by financial contributions from employees in the form of payroll tax contributions.”
Why it matters: The report comes as several members of Congress and President Trump have offered competing paid family and medical leave proposals that could be considered next year.
