President Biden is showing no sign of slowing down in implementing his gargantuan, transformative agenda. His new $1.8 trillion “families plan” pairs with the previously unveiled infrastructure plan, both of which invest huge amounts of money — by taxing the richest American citizens — into the country’s future by providing tax credits to those in greatest need. Biden also wants to make two-year community colleges free and boost daycare worker pay to $15 an hour.
White House senior adviser Anita Dunn wrote, “The president has been clear that our tax system is broken when a hedge fund manager making hundreds of millions of dollars is paying taxes at a lower rate than the janitor working in his office or the housekeeper at his mansion. And he’s going to take steps — steps which are supported by the American public — to address the fairness in the tax code.”
And bad news for Republicans: Americans are broadly supportive of these huge expenditures, most of which help those who are hurting the most. According to a recent Monmouth national poll, 2 in 3 people support Biden’s spending — which faces significant hurdles in Congress. Right now, Biden’s overall approval rating sits at around 53 percent.
Visit here for more information on the new plan’s expenditures, which would make the previously expanded earned income tax credit permanent, which should help around 66 million children and their families.
Biden would pay for the spending by increasing corporate tax rates and increasing the tax rate for the richest individuals back to 39.6 percent. Capital gains would also be transformed to eliminate a “carried interest” provision that allows the wealthy to keep lower tax rates on investment income. The president also wants to funnel money into the IRS so they have the ability to make more audits on the wealthiest taxpayers.
The two bills on infrastructure and family have a long way to go to make it through the House and especially the Senate, where Democrats have a margin of only one vote: Vice President Kamala Harris’s. And they can only pass legislation by majority vote through a process called reconciliation, which isn’t also applicable. It’s a tough call whether or not moderate Democrats or Independents will support Biden’s plans without significant revisions.
Kamin said, “There is very good evidence, at this point, that policies like the child tax credit end up in better outcomes for kids. You can look at it in terms of test scores, in terms of future earnings. So, these are important ways of helping families right now, but they’re also key to the future.”
Senate Minority Leader Mitch McConnell called the two proposals a “liberal wish list,” and has already described plans to obstruct most any Democratic-written legislation.
Progressives might also be a problem. They like the legislation, but they don’t think Biden is going far enough. They want lower healthcare costs, including lower costs for prescription drugs — the price of which has been ballooning out of control for years, costing lives.