On Wednesday evening, during a socially-distanced address before congress, President Joe Biden proposed a 10 year, $1.8 trillion American Family Plan which includes $1 trillion in new spending and investments and $800 billion in tax cuts and tax credits. Along with the American Jobs Plan proposal, the administration is touting both as a “once-in-a-generation investment in the nation’s future”.
The American Family Plan proposal includes funding for free post-secondary education; child care for low and moderate income workers; recruit and retain educators; universal pre-kindergarten for all 3 and 4 year olds; nutritional assistance to families; expand schools nutrition programs. In regards to tax cuts and tax credits the proposal extends key tax cuts in the American Rescue Plan including the Child Tax Credit; Earned Income Tax Credit; and the Child and Dependent Care Tax Credit. In addition the proposal creates a paid family and medical leave program; provides health insurance premium relief; and enables four million Americans without health insurance to gain coverage.
According to President Biden, this legislation, combined with the American Rescue Plan, will pay for itself in 15 year and reduce the nation’s deficit in the long term. The package will be funded by an increase on the top tax rate, an increase in the capital gains tax, and increase in IRS enforcement of tax evasion.
If this proposal, along with American Jobs Plan and the American Rescue Plan that was signed into law in March, total costs for these initiatives is estimated in excess of $6 trillion over a decade.
Contact: Paul Penna, Legislative Analyst, ppenna@njlm.org or 609-695-3481 ext. 110