Impact of Tax Hike on Wealthy on Child Care Workers in Washington, D.C.
A tax hike on the wealthy in Washington, D.C., led to increased wages for child care workers, benefiting both the workers and the child care centers. The Pay Equity Fund generated a 23% return on investment over a year, boosting employment and reducing turnover.
Key Points
- Tax hike on the wealthy funded the Pay Equity Fund
- Lead teachers received $14,000 and assistant teachers received $10,000 in the first year
- Benefited approximately 4,000 D.C. child care workers
- Bipartisan bill in Congress to award grants for similar programs
- Program showed early success with positive outcomes
Pros
- Increased wages for child care workers
- Boosted child care employment by nearly 7%
- Reduced turnover in child care centers
- Generated a 23% return on investment over a year
Cons
- Program funding was zeroed out by D.C.'s mayor, leading to potential future challenges