Biden will be giving a speech to congress on Thursday pitching his American Families Plan costing about $1.8 trillion in which he is addressing his plan of free child care (such as free pre-school), paid family leave and free community college. Additionally, he hopes to extend the child tax credit until 2025. This plan is to be funded by doubling the capital gains tax rate on incomes above 1 million to 39.6% and raising the top income tax bracket for households earning more than $400,000 to the same level. The discussion of these plans however, has already started a stock market sell off since last week. Although it does not stop there, Biden has also proposed a $2.3 trillion American Jobs Plan seeking to invest in public transit, railroads, airports, water pipes, high speed broadband, roads and bridges, veterans hospitals, child centers and to combat racial disparities. This proposal is intended to steer the US economy towards electric cars and clean energy. The hopes for this plan are said to be funded by raising the corporate tax rate from 21 to 28% and other taxes on multinational corporations. However, there is a lot of skepticism on how the Republican parties will react to the speech considering the method of funding.
Valeria Ramirez
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