Rep. Sara Jacobs, D-Calif., who represents parts of East County including El Cajon and La Mesa, introduced legislation to reduce the federal estate tax exemption and direct a portion of the revenue to childcare funding, a move that would decrease her own inheritance.
The Leveraging Estate Gains for America’s Children and Youth Act, or LEGACY Act, would lower the federal estate tax exemption to $7 million and dedicate 15% of the generated revenue to childcare programs. The bill aims to address what Jacobs described as a growing crisis in childcare access and affordability.
“Wealthy families like mine didn’t build our wealth alone, and we shouldn’t hoard the benefits of success that’s not only ours,” Jacobs said. “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.”
The legislation would amend the Internal Revenue Code of 1986 to create an Early Childhood Education Trust Fund. It would require 15% of estate tax revenue to be transferred into the fund to supplement the Child Care Development Fund. Twenty-five percent of the trust would be designated for stabilization grants to support the childcare supply. The bill also seeks to adjust the estate tax threshold to inflation, cutting it to nearly half of the level approved in the Republican-backed budget.
“It shouldn’t be predetermined at birth whether or not a child can grow up happy, healthy, and with endless opportunities – and by expanding childcare to all, we can help all kids succeed and build and leave behind their own legacy,” Jacobs said.
Erin S. Erenberg, CEO of the Chamber of Mothers, voiced support for the bill.
“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,” Erenberg said. “We know that the lack of affordable childcare costs the U.S. 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.”
Kristin Rowe-Finkbeiner, executive director and CEO of MomsRising, said the proposal would help strengthen the childcare workforce and support families.
“Using revenues from estate taxes to stabilize and bolster our childcare system – and to make it possible to pay childcare workers living wages – would strengthen the childcare 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,” Rowe-Finkbeiner said. “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.”
David Kass, executive director of Americans for Tax Fairness, said the bill addresses what he described as long-standing inequities in the tax code.
“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 health care, nutrition, and education programs for middle and working-class children across the country,” Kass said.
