Biden to reveal 'American Families Plan' at joint address to Congress

Apr. 28, 2021 4:15 AM ETBy: Yoel Minkoff, SA News Editor92 Comments
  • President Biden's "Build Back Better" agenda will be on display tonight as he addresses the nation following his first 100 days in office. At the heart of the speech is the "American Families Plan," the second stage of a multi-trillion-dollar investment proposal. The first part, called the "American Jobs Plan," was released at the end of March and would be funded by a corporate tax hike. The bill is currently working its way through Congress, though the administration is prepared to push it through without GOP support.
  • Meet the "American Families Plan": The proposal is being referred to as an investment in so-called human infrastructure like child care, health care and education. It would be paid for by hiking taxes on the wealthiest 1% of Americans, most notably a near doubling of the capital gains tax rate on incomes above $1M to 39.6%. The top income tax bracket for households earning more than $400,000 is also expected to return to 39.6% (where it had been before the 2017 tax cuts).
  • As for the details of the bill, it would include free preschool for all three- and four-year-olds, and require that all pre-kindergarten teachers earn at least $15 per hour. It would also expand the Child Tax Credit through 2025, in addition to extensions for the Earned Income Tax Credit and subsidies in the Affordable Care Act. Paid family and medical leave are among other benefits, as well as education programs that include free community college.
  • Outlook: The White House has portrayed the plans as a Robin Hood-style endeavor to tax the rich in order to spend on the middle class and poor. A lot would need to be collected in order to pay for the two infrastructure proposals, which add up to a massive $4T. They also come on top of the $1.9T "American Rescue Plan" passed in early March to combat COVID-19. Legislative aides say Democrats plan to use reconciliation to move Biden's plans through Congress, but it remains unclear what pieces will make it through to the final package.

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