White House proposes $ 1.8 trillion plan for children and families
Updated April 28, 2021, 5:03 p.m. ET
On the eve of his 100th day in office, President Biden will lay out the latest leg of his economic agenda, a massive spending package that senior administration officials say would improve the lives of millions of Americans.
Biden is expected to present the proposal, dubbed the U.S. plan for families, when it premieres joint speech to Congress Wednesday evening.
The measure, which targets $ 1 trillion in program spending and $ 800 billion in tax cuts, complements Biden’s. previous proposal of similar dimension: the American plan for employment. The plan is unlikely to go far in a deeply divided Congress, which makes laws. Any final version of the Biden proposal will likely be scaled back as Congress assesses the costs of such a proposal. The president plans to welcome congressional leaders from both parties to the White House in two weeks.
The White House wants to pay for the new measure by raising taxes for the wealthiest Americans – a move Republicans oppose.
“The US Jobs Plan and the US Family Plan are unique investments in the future of our country. The US Jobs Plan will create millions of good jobs, rebuild physical infrastructure and human resources. work in our country, and will spur innovation and manufacturing here at home, “the Biden administration said in a backgrounder outlining the plan.” The American Families Plan is an investment in our children and our families – helping families meet the basic expenses that so many now struggle with, lowering health insurance premiums, and continuing the historic reductions in child poverty from the American Rescue Plan. these plans reinvest in the future of the American economy and American workers, and will help us outperform China and other countries around the world. “
Helping the US economy recover and rebuild after the coronavirus pandemic was one of Biden’s main campaign arguments with US voters.
To support such growth, Biden’s Families Plan proposes a number of provisions aimed at children and youth, including the addition of at least four years of free public education – universal preschool for ages 3. and 4 years and two years of community college – for qualified Americans.
The measure includes billions of additional dollars for Pell grants and assistance to historically black colleges and universities, and young people would also benefit from extended summer food programs and healthier school lunches, administration officials told the journalists during a briefing Tuesday evening.
Additionally, the plan calls for making child care more affordable for low- and middle-class families, ensuring they pay no more than 7% of their income for child care.
Paid family leave and medical leave would allow workers to receive at least a partial wage for time spent dealing with family changes or health problems.
The plan calls for big changes to the tax code.
Middle and lower-class families would see relief, as Biden is proposing to extend until 2025 the expanded child tax credit that was part of the COVID-19 assistance program. He also wants to make permanent the extensions to other tax credits that were included in this bill, including those for health insurance premiums, a tax credit for children and dependents and the tax credit. income tax for workers without children.
On the flip side, the plan calls for raising taxes on the very rich, including reversing part of Trump’s 2017 tax cuts. Biden wants to tax capital gains for households earning more than $ 1 million in the country. same rate as wages, and he wants to strengthen the IRS enforcement to more closely check the finances of high incomes.
The high cost and a deeply divided Congress make the proposal a tough sell among Republicans, and some provisions might even run into trouble with some Democrats. But Biden and his team presented the spending as an early investment that would pay off in long-term economic growth.
Republicans have already spoken out against a tax hike, saying such hikes would hurt the economy. Biden presented higher taxes on the rich as a moral and economic imperative for sustainable growth.
Reshuffling tax rates, a senior administration official told reporters on Tuesday evening, is “rewarding work in our tax code, not just wealth.”