President Biden’s American Families Plan

Biden’s $1.8 Trillion Proposal

President Joe Biden made the case for his $1.8 trillion American Families Plan during his first address to the joint session of Congress.

The plan includes new spending on child care, education, and paid leave. Biden plans to raise taxes on wealthy Americans to pay for most of these initiatives.

The American Families Plan has the support of most Democrats, but Republicans have voiced concerns about the proposal. They object to raising taxes on the country’s top earners and argue the President has proposed too much federal spending.

Details of the Plan

The White House’s proposal includes $1 trillion in spending and $800 billion in tax cuts, which would be implemented over the next decade. The plan would provide universal preschool programs for 3- and 4-year-olds and two years of free community college for all Americans. The plan would also make childcare more affordable and increase federal funding for childcare providers.

Biden also wants to create a national paid-leave program which would eventually provide 12 weeks of leave for people needing to take care of children or other family members.

The American Families Plan would also make permanent tax cuts for low and middle-income Americans, including an expanded tax credit for child care and an earned-income tax credit for workers without children.

Paying for the Plan

To pay for the plan, the White House has proposed increasing taxes on the top 1% of American income earners. The highest income tax rate would rise from 37% to 39.6%. Biden would also raise the top tax rate on capital gains and dividends from 20% to 39.6% for those making over $1 million. When including payroll and investment taxes, wages and capital gains could be taxed at as high as 43.4%. The plan also caps a capital gains break for real estate investors at $500,000.

The American Families plan is the latest of Biden’s proposals aimed at improving the lives of American people. Many are cheering the ideas, but others are concerned about too much federal spending. It is likely that the plan will undergo changes before it is passed.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS21042901