Biden will announce a $ 1.8 million plan to expand the U.S. social security network

Joe Biden is ready to announce a $ 1.8 million plan to expand the U.S. social security network, which will be funded by sharp tax increases on wealthier households, senior government officials said .

The proposal, which spans a decade and covers areas such as childcare, paid leave, education and health care, marks the third stage of the U.S. president’s multimillion-dollar economic agenda and is expected to focus his first speech in a joint session. of Congress on Wednesday night on the eve of his 100th day in office.

The scale of the most recent plan, which will be called the “American Families Plan,” is larger than expected a few weeks ago, and reflects Biden’s ambition to rebuild the U.S. economy with greater government support for troubled households, far beyond the immediate relief provided during the pandemic.

Its main features include $ 225 billion in funding for child care spending and an additional $ 225 billion for the creation of a national family and medical leave program, measures designed to help households middle class and promote female participation in the labor market.

In addition, the plan provides $ 200 billion in funding for universal access to preschool and $ 109 billion for two free years of community college, as well as additional grants for the purchase of health insurance. It also extends a tax credit of up to $ 3,600 per child through 2025.

The plan comes to Biden’s $ 1.9 million tax stimulus bill enacted in March and a background, which has not yet been approved by lawmakers you plow $ 2.3 million in federal funds in infrastructure spending, to be paid with higher corporate taxes.

Because Biden’s economic plans are so ambitious, comprehensive, and costly, they face an uncertain path in Congress. Republicans are expected to oppose the plan, which will likely force the president to do so he trusts Democrats‘extremely thin majorities in both houses to pass legislation.

The most controversial aspect of the plan for American families is that it must be paid with approximately $ 1.5 million. raising taxes on rich Americans, a proposal already presented by Biden in his 2020 presidential campaign provoked a reaction among some critics of Wall Street and the America corporation.

Senior government officials confirmed that the plan would include a 37% increase in the upper income tax rate up to 39.6 percent for Americans earning more than $ 400,000, eliminate the preferential tax treatment of capital gains and dividends for those earning more than $ 1 million and stop making provisions that allow people to pass unrealized capital gains to his tax-free heirs.

“The president’s fiscal agenda will not only reverse the biggest gifts of the 2017 tax law, but will reform the tax code so that the rich have to follow the same rules as everyone else,” the White House said in a fact sheet which accompanied his proposal.

Biden wants to combine higher taxes on the rich with tougher enforcement of existing tax laws boost funding for the Internal Revenue Service. Officials expect a subsequent tax crackdown to generate $ 700 billion in revenue over the next decade. “These issues related to tax equity and making sure that people actually pay the taxes they already owe are fundamental and necessary,” a senior administration official said.

After presenting the plan to a small audience of lawmakers at the U.S. Capitol on Wednesday night, Biden is expected to promote him this week on trips to Georgia and Pennsylvania, two tipping states that have helped him defeat Donald Trump in the 2020 elections.

Biden has stressed that yes willing to negotiate with Republicans, but who would move forward without them if the Republican Party blocked significant results. A senior administration official said the White House was open to discussing alternative ways to pay the latest $ 1.8 million plan if Congress opposed specific tax proposals.

According to a RealClearPolitics average, the U.S. president’s job approval rating stood at 53.1%, significantly higher than Donald Trump’s at this stage of his presidency. But the figure has fallen to a low of 55.8% at the end of January following the investiture of Biden.

An ABC-Washington Post poll released on Sunday showed that Biden’s top ratings corresponded to his management of the coronavirus crisis, as did the country. quickly deployed vaccines, while some of his lowest were his immigration management on the U.S. border with Mexico.

In terms of the economy, voters generally approved of Biden’s performance, including its stimulus plan and infrastructure proposal, but wanted it to work more with Republicans.