On Wednesday (28) President Joe Biden launched the $1.8 trillion “American Family Plan” to invest in education, childcare and paid leave in the United States, the third new stimulus plan Biden has launched since taking office.
In his first speech to a joint session of Congress on Wednesday, Biden formally introduced the American Family Plan, which includes $1 trillion in spending over the next decade and $800 billion in tax credits for low- and moderate-income Americans.
The $1.5 trillion tax on families at the top of the U.S. pyramid includes nearly doubling the capital gains tax rate for families earning more than $1 million from 20 percent to 39.6 percent and restoring the personal income tax rate on the top 1 percent of Americans to 39.6 percent, (back to the level it was before the Republican 2017 tax reform).
On Wednesday Biden withdrew some of the tax increase plans he proposed during his campaign, including a plan to raise the increase in the estate tax.
During the 2020 presidential campaign, Biden promised to increase the estate tax, along with raising capital gains and corporate income tax rates, as a way to force companies and the wealthy to pay more. Biden promised to raise the estate tax rate to 45 percent and lower the exemption to $3.5 million, but the current “American Family Plan” leaves the estate tax unchanged, with the individual exemption remaining at about $11.5 million and the tax rate at 40 percent.
At the same time, Biden also abandoned the “cut in the so-called pass-through businesses (pass-through businesses)” tax benefits, and currently maintain the 20% deduction benefits.
The White House statement mentioned that the “American Family Plan” Bean’s previously proposed $2 trillion jobs and infrastructure plan is a generational investment in America’s future, investing in the U.S. economy and the future of Americans to help the U.S. stand out from competition from China and other countries around the world.
Biden’s latest plan is likely to be opposed by the Republican Party.