President Joe Biden has suggested supporting infrastructure, free pre-kindergarten, and community colleges in a $6 trillion budget for next year, which would be paid for by rising taxes on the wealthiest.
Biden’s American Employment Plan, which includes the American Families Plan and an educational opportunity plan, is part of the $6 trillion budget. It aims to rescue the economy from the COVID-19 epidemic and “build it back better,” producing millions of jobs by rebuilding infrastructure and transitioning to sustainable energy.
The American Families Plan — to assist families having to juggle working at home and raising children during the pandemic — includes extending tax cuts for families with children, and the education plan includes free pre-school and community college.
Biden has proposed a Made In America tax plan to pay for the budget, which would restructure the tax code to make sure wealthy companies “pay their fair share” the budget proposal shows. He has also proposed reforms to the income tax code in the American Families Plan, so the wealthy “play by the same rules,” by eliminating “longstanding loopholes,” such as lowering taxes on capital gains.
Along with road and building improvements, the budget would invest in public health crisis-related infrastructure, including $8.7 billion in discretionary money for the Centers for Disease Control and Prevention to increase public health disaster preparation. Increased financing for the opioid crisis, the HIV/AIDS pandemic, improved access to mental healthcare, and measures to minimize gender-based violence, combat gun violence, and address racial inequities in healthcare are all included.
Despite the fact that Biden proposes to fund the expenditure increases by raising taxes on rich firms and people, the projected budget still results in a $1.8 trillion deficit next year.
“The budget invests directly in the American people and will strengthen our Nation’s economy and improve our long-run fiscal health,” Biden said in a letter to Congress accompanying the proposal. “It reforms our broken tax code to reward work instead of wealth, while also fully paying for the American Jobs Plan and the American Families Plan over 15 years.”
Senate Republican leader Mitch McConnell, R-Ky., issued his own statement on the budget proposal, which accused the Biden administration of lack of transparency, and said the budget itself would “drown American families in debt.”
“Now we know why the Administration tried to bury their budget announcement on the Friday before a holiday weekend,” the statement said.
Officials told NBC News Biden would not impose new taxes on anyone earning under $400,000 to pay for spending boost, with more than $2 trillion in infrastructure plans, a $1.8 trillion increase in childcare and education spending, and $1.5 trillion for domestic programs and slight boost in defense spending.
White House press secretary Jen Psaki told reporters that Biden inherited a $3 trillion deficit under the Trump administration to get the pandemic control, and the budget is needed to continue to recover.