President Joe Biden will notify Congress on Wednesday of $ 1.8 trillion in new spending and tax credits for children, students and families, senior administration officials said.
Biden will unveil the massive new package less than a month after the White House released a sweeping proposal to spend more than $ 2 trillion on infrastructure and other projects over an eight-year period. Together, the plans encompass the Biden administration’s vision to overtake the U.S. economy as the nation seeks to recover from the coronavirus pandemic and look beyond.
The new proposal, which includes roughly $ 1 trillion in investments and $ 800 billion in tax credits over a decade, will be partially offset in 15 years by an increase in taxes paid by the richest Americans, the said White House.
Here are some of the requirements of the new plan:
$ 225 billion to provide quality childcare and ensure families pay only a fraction of their income for childcare services based on a $ 225 billion tier to create a nationwide comprehensive program of paid family and sick leave, $ 200 billion for a free universal preschool for all 3- and 4-year-olds that has offered $ 109 billion as part of a national partnership with states to provide free community college for all students for two years. About $ 85 billion for Pell Grants and an increase of about $ 1,400 to the maximum award for low-income students. $ 62 Billion Grants Program to Increase Student Retention and Graduation Rates A $ 39 billion program that provides two years of subsidized tuition to students from families earning less than $ 125,000 and in a four-year historically black college or college University, tribal college, or minority university or institution, $ 45 billion to meet the nutritional needs of children, including by expanding access to the summer EBT program that helps some oil Families with low-income children buy $ 200 billion worth of groceries outside of the school year to make the $ 1.9 trillion Covid stimulus deployment permanent, lowering health insurance premiums for those who do Buy insurance cover yourself by 2025 That was in the Covid relief bill hold. Permanent expansion of the tax credit for children and dependent care. Permanent tax credit for childless workers
“These are investments that we as a country cannot afford,” a senior civil servant said on a conference call with reporters on Tuesday evening.
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To fund the programs and tax breaks, the proposal would partially reverse key elements of the 2017 Tax Cut Act, the major legislative achievement of former President Donald Trump’s first year in office.
The Biden government’s new spending plan would raise the highest income tax rate for the richest Americans to 39.6%. This rate has been reduced to 37% under the 2017 Act for married couples with taxable income above $ 600,000.
The plan would also aim to close a number of tax loopholes and raise taxes on capital gains to 39.6% for households making more than $ 1 million.
Biden’s government claims that under the new plan, no one earning $ 400,000 a year or less will see their taxes spike.
Biden will detail the plan on Wednesday evening during a personal address to a joint congressional session, which will also set out his administration’s broader legislative priorities. The event takes place on the eve of Biden’s 100th day in office.