President Biden’s American Families Plan
Biden’s $1.8 Trillion Proposal
President Joe Biden made the case for his $1.8 trillion American Families Plan during his first address to the joint session of Congress.
The plan includes new spending on child care, education, and paid leave. Biden plans to raise taxes on wealthy Americans to pay for most of these initiatives.
The American Families Plan has the support of most Democrats, but Republicans have voiced concerns about the proposal. They object to raising taxes on the country’s top earners and argue the President has proposed too much federal spending.
Details of the Plan
The White House’s proposal includes $1 trillion in spending and $800 billion in tax cuts, which would be implemented over the next decade. The plan would provide universal preschool programs for 3- and 4-year-olds and two years of free community college for all Americans. The plan would also make childcare more affordable and increase federal funding for childcare providers.
Biden also wants to create a national paid-leave program which would eventually provide 12 weeks of leave for people needing to take care of children or other family members.
The American Families Plan would also make permanent tax cuts for low and middle-income Americans, including an expanded tax credit for child care and an earned-income tax credit for workers without children.
Paying for the Plan
To pay for the plan, the White House has proposed increasing taxes on the top 1% of American income earners. The highest income tax rate would rise from 37% to 39.6%. Biden would also raise the top tax rate on capital gains and dividends from 20% to 39.6% for those making over $1 million. When including payroll and investment taxes, wages and capital gains could be taxed at as high as 43.4%. The plan also caps a capital gains break for real estate investors at $500,000.
The American Families plan is the latest of Biden’s proposals aimed at improving the lives of American people. Many are cheering the ideas, but others are concerned about too much federal spending. It is likely that the plan will undergo changes before it is passed.
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