Amnon Jakony (Jay Arts Holdings)
President Joe Biden will bring tax-and-spend liberalism roaring back into style during an address to a joint session of Congress Wednesday night, proposing $1.8 trillion in new spending initiatives and tax credits over the next decade to be paid for with increased taxes.
The “American Families Plan” calls for at least four years of free education — including universal pre-K and free community college tuition — direct money payments to American families with children, new government-funded family and medical leave programs, and expanded Obamacare subsidies. The president also wants Congress to “adjust the length and amount of [unemployment insurance] benefits unemployed workers receive depending on economic conditions.”
The plan calls for spending $1 trillion and offering $800 billion in tax credits to meet these goals. The White House claims that increased taxes on Americans making over $400,000 annually will fully pay for this dramatic increase in spending in 15 years.
Here’s a breakdown of what Biden’s plan calls for:
- $200 billion for free universal preschool for all 3- and 4-year-olds in America;
- $109 billion for two years of free community college;
- $80 billion to fund new Pell Grants;
- $62 billion to attempt to increase college completion and retention rates in “disadvantaged communities” by providing child care and mental health services, emergency needs-based grants, support for transfer agreements, and “evidence-based remediation programs”;
- $46 billion to subsidize tuition at historically black colleges and universities, Hispanic-serving institutions, and tribal colleges and universities;
- $9 billion to “train, equip, and diversify American teachers” with increased scholarship funding for would-be teachers and additional targeted spending for “candidates of color.”
- Biden is calling for a “national partnership with states” to provide free preschool for 3- and 4-year olds. The quality of care is supposed to be high with “low student-to-teacher ratios, high-quality and developmentally appropriate curriculum, and supportive classroom environments that are inclusive for all students.”
- All pre-K program employees will earn a minimum wage of $15 per hour.
- Biden’s free community college plan will include offering free tuition to illegal immigrants who were brought to the U.S. as minors, so-called “DREAMers.”
- Pell Grant awards will be increased by about $1,400 and will be offered to DREAMers.
Welfare for Families
- $225 billion to subsidize child care for working parents and give child care workers a $15 minimum wage;
- $225 billion for guaranteed 12 weeks of comprehensive paid family and medical leave, providing workers up to $4,000 a month with a minimum of two-thirds of average weekly wages replaced;
- $45 billion for free and reduced-price meals for schoolchildren during summer vacation, expanded meal programs during the school year, and expanded Obama-era healthy foods demonstrations;
- $200 billion to make the increased Obamacare subsidies under the Biden COVID-19 relief plan permanent;
- The Child Tax Credit increases from the Biden COVID-19 relief plan will be extended through 2025 and will be paid regularly in advance;
- Reimburse families making less than $125,000 annually for 50% of their child care costs for children under age 13 by making the Child and Dependent Care Tax Credit expansion permanent;
- Make the Earned Income Tax Credit Expansion for workers without children permanent.
- Individuals previously convicted on felony drug charges will be made eligible for food stamp benefits.
- Unemployment insurance will be reformed to adjust the “length and amount” of benefits received.
- The IRS would be given additional regulatory power over tax preparation services like TurboTax.
- Biden would increase spending on the IRS to crack down on tax evasion and implement new regulations to force financial institutions to “report information on account flows so that earnings from investments and business activity are subject to reporting more like wages already are'”;
- Repeal President Donald Trump’s 2017 tax cut, raising the top income tax rate back to 39.6% from 37%;
- Raise the capital gains tax to 39.6% for households making more than $1 million;
- Reinstate the “Death Tax” on inheritances in excess of $1 million ($2.5 million per couple when combined with existing real estate exemptions) that are not donated to charity;
- Eliminate the carried interest tax loophole;
- End the real estate tax break on property transfers for gains greater than $500,000;
- Eliminate loopholes and deductions to implement a flat 3.8% Medicare tax rate on Americans making more than $400,000.