By
Mayowa Adebajo
April 12th, 2024
The scheme will provide tax cuts in American Rescue Plan that are beneficial to lower and middle-income workers and families.
The US president Joe Biden has revealed the American Families Plan to raise $1.5 trillion by taxing in 10 years. The American president hopes to generate the funds by increasing taxes on US highest earners, the wealthiest 1% of taxpayers. The idea was unveiled in a press release published by the White House on the 28th of April. As stated in the publication, the $1.5 trillion will finance child care, paid leave, free education, a tax cut for low-income families, and so on.
Biden Speaks on Raising Tax of High Earners
Biden aims to actualize the American Families Plan by increasing tax revenue on Americans making over $400,000 annually. He will also pay more attention to the tax audits of the wealthy to avoid tax evasion, prevent tax loopholes, and change the taxation of wealthy estates. The White House further intends to allocate additional resources to the IRS to enhance tax audits of households with an income of over $400,000.
While addressing the Congress on Wednesday, the president said he thinks that Americans should be able to become billionaires or millionaires but must “pay your fair share”.
In the press release, the White House revealed the purpose of the American Families Plan. The lawmakers revealed:
“The American Families Plan is an investment in our children and our families- helping families cover the basic expenses that so many struggles with now, lowering health insurance premiums, and continuing the American Rescue Plan’s historic reductions in child poverty.”
More on the American Families Plan
The proposal will transfigure education from early childhood to post-secondary. This will ensure that children have the right tools to develop, learn and succeed in life. Also, it will allow the standard preschool to all three and four years olds and provide access to two years of free community college. It will aim towards making college more affordable for low and middle-income students.
In addition, it will deliver support to children and their families by generating a comprehensive paid family and medical leave program. This plan aims to provide good health, nutritional assistance to needy families and eventually reduce childhood hunger.
Furthermore, the scheme will provide tax cuts in American Rescue Plan that are beneficial to lower and middle-income workers and families. Besides making it easier for families to make ends meet, it will also strengthen child and economic performance.
According to a report by ITEP (institute On Taxation And Economic Policy), the top part of the scheme will restore the top personal income tax rate to 39.6%. The plan intends to eliminate tax breaks associated with capital gains for millionaires and make the tax process more equitable. The report shows that the proposal would affect the wealthiest 1% of US citizens.
Recently, the president revealed The American Jobs Plan, which strives to provide many good jobs, reconstruct the country’s physical infrastructure and workforce and incite change in the United States. The purpose of these plans is to renew a better economy for Americans.