Tax Reform: Good News For American Families

‘Tax Credit To Encourage Employers To Offer Workers Up To 12 Weeks Of Paid Family Leave’ Included In Landmark Tax Reform Bill


SENATE MAJORITY LEADER MITCH McCONNELL (R-KY): “[T]hanks to the tireless work of my colleague from Nebraska, Senator Fischer, the Tax Cuts and Jobs Act encourages more employers to provide paid family leave. That's good news for the millions of American families that will welcome a child this year. My Democratic colleagues like to speak about the importance of paid leave. But not a single one of them voted with us. Every Democrat in the House and the Senate voted against the bill that included Sen. Fischer’s paid family leave incentives.” (Sen. McConnell, Remarks, 2/15/2018)

SEN. DEB FISCHER (R-NE): “I was very pleased to be able to get passed the nation’s first paid family leave proposal.”  (“Nebraska Senator Hopes New Law Will Encourage Employers To Offer Paid Family Leave,” GrayDC, 2/4/2018)


An Improved Nationwide Family Leave Policy

SEN. DEB FISCHER (R-NE): “I’ve been working on the Strong Families Act, which is a voluntary paid family leave, for about four years, and we just got it included in the tax bill that was passed in December… So it is in law right now.” (“Deb Fischer Talks Implementation Of The Strong Families Act,” Fremont Tribune, 2/7/2018)

  • SEN. FISCHER (R-NE): “For four years in the Senate, I’ve been working on the plan to address this challenge that was included in our tax bill. My proposal aims to increase Americans’ access to paid family leave while remaining cognizant of the realities of running a business — especially a small one. This plan uses a tax credit to encourage employers to offer workers up to 12 weeks of paid family leave. Using what I call the ‘carrot approach,’ the policy gives businesses an incentive to give employees more flexibility when they face family worries… Employers who take advantage of the program are entitled to a tax credit of up to 25 percent of wages replaced — a significant incentive. There are no government mandates or new federal programs...” (Sen. Fischer, Op-Ed, “The Senate Tax Bill Should Give Families The Paid Leave They Deserve,” The Washington Post, 12/6/2017)


Major Companies Which Have Announced Expanded Parental Leave Policies Include

WALMART: “…broadly, associates in the U.S. will share in tax savings through: … An expanded parental and maternity leave policy, providing full-time hourly associates in the U.S. with 10 weeks of paid maternity leave and six weeks of paid parental leave. Salaried associates will also receive six weeks of paid parental leave.” (Walmart, Press Release, 1/11/2018)

CVS: “CVS Health today announced three major programs that will enable employees to share in the tax savings created by the U.S. Tax Cuts and Jobs Act. … The company is also creating a new paid parental leave program. Effective April 1, 2018, full-time employees who welcome a new child into their home can take up to four weeks away from work at 100% of their pay to ensure the newest addition to their family gets off to a strong start in life.” (CVS Health, Press Release, 2/8/2018)

LOWE’S: “Due to tax reform… Effective May 1, Lowe's will also be expanding its benefits package for full-time workers to include paid maternity leave for 10 weeks, paid parental leave for two weeks, adoption assistance of up to $5,000, and faster eligibility for health benefits…” (“Lowe's To Give Some Employees Bonuses Of Up To $1,000 And Expand Benefits Due To Tax Reform,” CNBC, 2/1/2018)

SCHWAB: “…anticipating the tax law change and in response to the company’s strong financial performance and our employees’ unwavering commitment to clients, Schwab …expanded parental leave benefits for all Schwab employees…” (Schwab, Press Release, 1/25/2018)

STARBUCKS: “The world's largest coffee chain is adding perks for its employees in the wake of the U.S. tax cuts… Starbucks also announced Wednesday that it would add six weeks of paid parental leave for its hourly employees who become new dads, a benefit that had been offered only to new mothers and adoptive or foster parents.” (“Starbucks Expands Its Paid Sick Leave And Parental Leave After Tax Cuts…” The Washington Post, 1/24/2018)


Related Issues: Taxes, Tax Reform