Presidentwill propose spending $1.8 trillion over the next decade to make massive investments in the nation’s education system and to expand and protect tax credits aimed at the middle class, administration officials said Tuesday night, adding that he would pay for the ambitious agenda with several tax hikes aimed at the wealthiest Americans. In a prime-time speech to Congress on Wednesday, , dubbed the American Families Plan.
It safety net ― will rely on the party’s narrow majorities in Congress to stay united.path forward. While an earlier legislative package from the administration, which focused heavily on infrastructure projects, could attract some support from Republicans, it’s likely this plan ― which is targeted at traditional Democratic priorities such as education and the social
The plan’s centerpiece is a massive investment in the nation’s education system, including universal, free pre-kindergarten education for all 3- and 4-year-olds and free community college for all Americans. The $200 billion pre-K would save the average family $13,000 annually. Spending $109 students to attend at no cost.
Biden is also proposing increasing the maximum Pell Grant, which helpsattend college, by $1,400, to nearly $8,000, and making two years at historically Black colleges and universities and other institutions focused on educating racial minorities free for students from families making less than $125,000 a year. The most immediately controversial element of increases on the wealthiest Americans, which could face resistance from some moderate Democratic lawmakers despite the overwhelming public popularity of increasing taxes on the rich.
Biden’s plan would return the tax rate on the wealthiest Americans to 39.6% after it fell to 37% under the GOP’s 2017 tax law. It would also tax capital gains as income for people making more than $1 million a year ― roughly the wealthiest 0.3% of American households ― and close loopholes used bymanagers and wealthy families to avoid paying taxes. The administration also proposes spending $80 billion over the next decade to and target it at wealthy Americans who dodge taxes. Budget cuts in recent years have forced the IRS to focus on auditing middle-income .
Biden is also extending one of theRescue Plan: a monthly benefit for parents. Under the recently enacted package of , American families making up to $150,000 will get a monthly check of up to $300 per child, starting sometime after July 1. The law also instructed the IRS to send the tax credit money in advance, essentially creating a child allowance ― but only for this .