The Washington Examiner reports that President Joe Biden unveiled his latest high-priced spending package when he addresses Congress on Wednesday.
The spending plan is being referred to as the “American Families Plan.” It is expected to cost $1.8 trillion.
What’s in it?
The spending plan can, for the most part, be divided into two parts. The first $1 trillion will go to various social welfare investments and the remaining $800 billion will go to tax benefits.
Biden is proposing free universal preschool for all children 3 or 4 years of age as well as free community college, which, together, are estimated to cost $309 billion.
Another $225 billion, under Biden’s plan, would go to child care services for low- to middle-income families.
And, yet another $225 billion would go to the creation of a program for paid family and medical leave. Some of this money would also go to the expansion of food stamp programs.
In his plan, Biden is also looking to extend the child tax credit change that was made in the most recent coronavirus spending bill. That change has given families a tax credit of $3,600 for each child under the age of five and $3,000 for each child between the ages of six and seventeen. Biden’s plan would extend this version of the child tax credit through 2025.
The big question: How will it be paid for?
In order for Biden’s plan to have any chance, he has to find a way to convince Americans that he has a legitimate plan to pay for the $1.8 trillion proposal.
Biden, in his American Families Plan, claims that the proposal can be paid for over the next 15 years without raising taxes on people making $400,000 or less.
Biden claims that $700 billion of the bill can be paid for by increasing the Internal Revenue Service’s (IRS) funding so that it can better enforce tax law, by taxing the capital gains of households making over $1 million in income, and by raising the top marginal tax rate on labor income to 39.6 percent.
It is unclear, however, how Biden claims that the rest of the proposal will be paid for.
Either way, it is unlikely that Congressional Republicans, who are especially wary about further spending following the $1.8 trillion coronavirus spending bill that Democrats rammed through Congress, will get on board with the American Families Plan.