The American Families Plan
The following informational summary is not intended to promote or reflect any opinion(s), analysis, or recommendation(s) from PDS Planning, Inc. as it relates to the cost(s) or benefit(s) of the proposed legislation. The information below has been copied from the “Fact Sheet: The American Families Plan” as laid out by the Biden Administration and linked below.
Last night, President Biden and his administration announced the American Families Plan, “an investment in our kids, our families, and our economic future.” While nothing is set in stone and pieces of the plan are liable to change, we wanted to highlight a few of the key points presented, taken directly from the source. To read the full statement released by the White House, click the following link. Fact Sheet: The American Families Plan.
At Least Four Years of Free Public Education
- Free universal pre-school for all three and four olds
- President Biden is calling for a national partnership with states to offer free, high-quality, accessible, and inclusive preschool to all three and four year olds, benefitting five million children and saving the average family $13,000.
- Equally as important, the plan will ensure the publicly-funded preschool is high-quality, has low student-to-teacher ratios, developmentally appropriate curriculum, and supportive classroom environments that are inclusive to all students.
- Two years of free community college
- First-time students and workers wanting to reskill can enroll in community college to earn a degree or credential for free. This benefit can be used over a three to four year period.
Education and Preparations for Teachers
The U.S. faces a large and growing teacher shortage of up to 100,000 certified teachers. Shortages disproportionately impact schools with higher percentages of students of color exacerbating educational disparities. Investing in American teachers will improve the quality of new teachers entering the profession, increase retention rates, and increase the number of teachers of color.
- Double scholarships for future teachers from $4,000 to $8,000 while earning their degree
- Provide educators opportunities to earn additional certifications in high-demand areas (special education, etc.)
- Ensure low and middle-income families pay no more than 7% of their income on high-quality child care.
- Child care providers will receive funding to cover the true cost of quality early childhood care and education.
- A $15 minimum wage for early childhood staff and ensure that those with similar qualifications as kindergarten teachers receive comparable compensation and benefits
Tax Cuts for America’s Families and Workers
- Health care should be a right, not a privilege, and Americans facing illness should never have to worry about how they are going to pay for their treatment. No one should face a choice between buying life-saving medications and putting food on the table. President Biden has a plan to build on the Affordable Care Act and…
- Lower prescription drug costs for everyone by letting Medicare negotiate prices
- Reducing health insurance premiums and deductibles for those who buy coverage on their own
- Creating a public option and the option to enroll in Medicare at age 60
- Closing the Medicaid coverage gap to help millions of Americans gain health insurance
- 9 million people will save hundreds of dollars per year and an additional 4 million uninsured will gain coverage
- Extend the Child Tax Credit increases through 2025
- Permanently increase tax credits to support families with child care needs
- Make the Earned Income Tax Credit Expansion for childless workers permanent.
Tax Reform that Rewards Work – Not Wealth
The President’s tax agenda will not only reverse the biggest 2017 tax law giveaways, but reform the tax code so that the wealthy have to play by the same rules as everyone else.
- It would increase investment in the IRS, while ensuring that the additional resources go toward enforcement against those with the highest incomes, rather than Americans with actual income less than $400,000
- Increase the top tax rate on the wealthiest Americans to 39.6 percent
- Applying only to those within the top one percent
- Households making over $1 million—the top 0.3 percent of all households—will pay the same 39.6 percent rate on all their income, equalizing the rate paid on investment returns and wages
- This includes gains realized from the sale of long-term securities
- Ending the practice of “stepping-up” the basis for gains in excess of $1 million ($2.5 million per couple when combined with existing real estate exemptions) and making sure the gains are taxed if the property is not donated to charity
These investment, combined with those laid out in the President’s American Jobs Plan, will boost earnings, expand employment opportunities, and enable the U.S. to win the 21st century.
For more detailed information on all the proposed changes and investments, you can access the full briefing by clicking the following link – Fact Sheet: The American Families Plan.
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