Politics

Biden To Unveil Trillions In New Spending In Tonight’s Speech – Here’s What’s In The Plan

President Joe Biden will give his first address to the House and Senate Wednesday night, where he will lay out more than $1.8 trillion in new spending.

The speech, which is not his first State of the Union address, is tonight at 9pm Eastern.

The “American Families Plan” would create massive new government programs and entitlements.

Politico describes the plan as investing “invest in social welfare and family assistance programs aimed at redistributing the nation’s wealth and lifting millions of Americans out of poverty.”

This new push, in addition to the American Jobs Plan which was rolled out last month, means that the Biden administration is proposing roughly $4 trillion in new spending, in addition to the recently passed $1.9 trillion COVID bill.

Should both plans pass, they will expand on a large scale, the U.S. social safety net, and transform the role of government in public and everyday life. 

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A Preview Of Things To Come

So what would the American Families Plan cover? Here are a few of the details:

Low and middle income families would not pay more than seven percent of their income for child care for children younger than five years of age, and childcare workers would get a minimum wage of $15 an hour.

Another $200 billion would go to universal preschool for three and four year olds.

For college students, $109 billion would be set aside for free community college – with a caveat. States would be forced to pick up 25% of the cost.

The plan also calls for $85 billion for the enhancement of Pell Grants. That would mean roughly $1,400 in additional assistance, about a 20% increase.

$225 billion would be directed to paid family and medical leave, up to $4,000 a month.

Another $17 billion would expand the free meal program for school kids and assist those who have been formerly incarcerated receive SNAP benefits.

President Biden is also looking to adjust the length and amount of unemployment insurance benefits workers can be eligible for, however no details are known yet about what that might include.

The child tax credit would be extended until 2025 and be permanently refundable.

Plans are also in the works to beef up the Affordable Care Act. Enrollees would pay no more than eight percent of their income for coverage, and completely eliminate premiums for some.

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Who Will Pay For It?

Who will pay for it? The simple answer is, taxpayers.

The 2017 Republican tax cuts would be reversed, taking the top marginal tax rate up to %39.6, up from 37%. 

The capital gains tax rate will go up for those earning over $1 million per year. Currently that rate stands at 20%, but will be tied to the top income tax rate at 39.6%

Individuals earning $200,000 and couples earning $250,000 would pay an additional 3.8% to help fund increased benefits in the Affordable Care Act.

The Internal Revenue Service will receive $80 million to beef up enhancement of tax evaders, especially those that are high earners. Increases in estate taxes are also in the mix. 

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GOP Reaction

Sen. Tim Scott (R-SC) will give the GOP response following the speech.

Sen. Joni Ernst of Iowa is slated to give a “pre-buttal” response to Biden’s speech.

 

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