Deutsche Welle (English edition)
US: Biden to unveil $1.8 trillion American Families Plan
The US president is set to unveil another historic spending plan aimed at addressing wealth inequality. Proposed tax hikes will likely face tough opposition from Republicans.
US President Joe Biden will mark 100 days in office on Wednesday with an address to Congress in which he will announce a new historic spending plan for children, families and education, senior administration officials said.
During the televised speech, the president will lay out his American Families Plan. He is hoping to get approval from a deeply divided Congress for a further $1.8 trillion (€1.49 trillion) in government spending.
The program follows on the heels of the president's American Jobs Plan for infrastructure spending, which he unveiled at the beginning of April, and would be largely funded by reversing tax cuts for the rich introduced by his predecessor,
Donald Trump.
"The president will be proposing a set of measures to make sure the wealthiest Americans pay the taxes that they owe, while also ensuring that no one making less than $400,000 a year will see their taxes go up," an official told AFP on condition of anonymity.
What is included in the spending plan?
$800 billion in tax cuts to lower income people
A tax increase from 37% to 39.6% for the wealthiest and closing tax loopholes
$225 billion for childcare and free preschool with monthly payments to parents
Two years free community college and grants to help people enter higher education
$225 billion for paid family and medical leave as well as a reduction in health insurance premiums for those covered by the Affordable Care Act
The official cited by AFP said one of the main aims is to reduce child poverty while also supporting parents with childcare so that they, especially mothers, can remain in work.
Will the plan have enough support?
The Biden administration is hoping that raising taxes on only the wealthiest people will increase voter support. The Democrats are aiming to get key legislation through before the midterms in 2024 when there is a good chance that they will lose their razor-thin majority in Congress.
The spending and tax hikes will likely be unpopular with Republicans. Biden's $1.9 trillion COVID-19 relief bill was passed by the Senate last month with no Republican votes.
The American Families Plan will, however, need Republican support in the Senate in order to become law.
ab/nm (AP, AFP, dpa)