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Biden’s American Work Plans and American Family Plans: What’s in them and where the money comes from

President Biden’s ambitious agenda has a big price tag. In the first 100 days of his term, Mr. Biden’s three major initiatives are the law-signed American Rescue Plan, and the proposed US Employment Plan and American Family Plan. — It costs over $ 6 trillion in total.

By comparison, the federal government spent more than $ 6.5 trillion in 2020, of which more than $ 3 trillion was in the red.

Republicans rebelled at the expense. None of the Republicans voted for the $ 1.9 trillion bailout package in March.

Unlike stimulus measures that rely on deficit spending, the president’s next plan includes a series of steps in the so-called “once in a generation” proposal, and Mr Biden vowed not to raise taxes. Annual income of less than $ 400,000.

“What I have proposed is fair. Financially responsible. It will create millions of jobs and grow the economy,” Biden said in his first speech at the joint session on Wednesday. Increase the income paid for the plan I proposed. ” Parliamentary session.

Mr Biden said he was ready to accept the negotiations because some Republicans and centrists were already opposed to the tax increase, but said he had to pay new spending. According to the White House, their tax proposals will generate enough income to cover both plans in 15 years.

Here’s what each proposal is and how the White House plans to pay for it:

American family planning

The plan includes $ 1 trillion in spending on family and education, and a $ 800 billion tax cut to promote economic prosperity and security.

  • $ 200 billion for all universal pre-kindergartens ages 3 and 4

  • $ 225 billion for childcare, including grants for low- and middle-income households and funding for healthcare providers and workers

  • Over $ 100 Billion in a 2-Year Free Community College for Everyone

  • $ 225 Billion for National Paid Family and Medical Leave Programs

  • Expand the extended child tax credit. This means that the family will receive a total check of $ 3,600 for children under the age of 6 and a total of $ 3,000 for children aged 6 to 17 to 2025.

  • Permanent increased child and dependent tax credits, and earned income tax credits

  • Permanently expanded premium subsidies under the Affordable Care Act

  • Includes scholarships for teachers, increased Pell Grant, expanded nutrition programs and more

The White House claims that the plan will be paid in full for over 15 years by implementing tax reforms aimed at the wealthiest Americans.

  • Raise the top bracket tax rate from 37% to 39.6% and roll back changes from President Donald Trump’s 2017 Tax Cuts and Jobs Act.

  • Taxing capital gains as the normal income of a $ 1 million or more household that pays the same 39.6% tax rate on capital gains and dividends, and avoids wealthy taxpayers paying taxes on specific gains Ask to close the loophole.

  • Includes $ 80 billion in IRS over a decade to strengthen enforcement among the wealthy and crack down on tax evasion. This is among the changes that the government will allow the IRS to raise another $ 700 billion over a decade.

American Employment Plan

The proposal requires more than $ 2 trillion to rebuild the country’s collapsing infrastructure, such as roads, bridges and airports, and what the government calls “care” infrastructure is for the elderly and disabled. Focuses on long-term care.

  • $ 621 billion for infrastructure such as roads, bridges, railroads, airports and electric vehicles

  • $ 50 billion to improve infrastructure to withstand climate change

  • $ 111 billion to replace lead pipes and upgrade drinking water systems

  • $ 100 billion for broadband

  • $ 213 Billion to Build and Renew Affordable Homes

  • $ 100 billion will be used to build and upgrade public schools

  • $ 400 Billion for Home and Community Care and Industrial Workers

  • $ 180 billion in R & D spending

  • $ 300 billion for manufacturing, including supply chain enhancements

  • $ 100 billion for workforce development

Together, the administration insists on it Will be paid in full With the passage of the Made in America Tax plan.

  • Raise the corporate tax rate from the current 21% to 28%

  • Call on the country to set Global minimum tax To companies in efforts to prevent foreign use by acting as tax havens

  • We will raise the global minimum tax on US multinationals from 10.5% to 21% and calculate by country.It also removes the rule that allows companies not to pay taxes on the first 10% of foreign assets’ income.

  • It imposes a minimum tax of 15% on “book income” reported to investors in large corporations with incomes in excess of $ 2 billion.

  • Makes it difficult for US companies to change jobs and claim to be foreign companies, terminate overseas job change deductions, provide tax credits to return jobs to the US, tax credits and subsidies to the fossil fuel industry Eliminate gold and get rid of other loopholes

  • Calls for stronger corporate-focused tax enforcement, as is the case with American family planning

Biden’s American Work Plans and American Family Plans: What’s in them and where the money comes from

Source link Biden’s American Work Plans and American Family Plans: What’s in them and where the money comes from

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