President Joe Biden used his first address before a joint session of Congress Wednesday evening to talk about the “American Families Plan” for low- and middle-income families.
Biden mentioned his “American Families Plan” will give affordable child care, guarantee that low- and middle-income families will not have to pay “more than seven percent of their income for high-quality care for children up to the age of five,” and “expand the tax credit for every child in a family.” This would provide “up to $3,000 in a ‘child tax credit’ for children over six and up to $3,600 for children under six.” In addition, for two parents with two kids, the tax credit would be up to $7,200 “to help take care of your family,” Biden said.
To pay for the plan, Biden would increase taxes on the wealthy and investors and boost tax enforcement at the IRS. According to another report, the Biden administration is set to ask for an increase in funds in the “American Families Plan” for the Internal Revenue Service (IRS) by $80 billion to boost their audit capabilities to crack down on tax evasion by high-earners and large corporations.
The New York Times shows the administration believes the revenue from the new taxes could raise more than $780 billion.
According to a study from the National Association of Manufacturers, President Joe Biden’s tax hike plan would cost the American economy one million lost jobs in the first two years.
The study found that the U.S. would lose one million jobs in the first two years, GDP would be $117 billion lower by 2023, and ordinary capital or investments in equipment and structures would be $80 billion less in 2023.
National Association of Manufacturers President and CEO Jay Timmons summarized the studies findings:
After decades of advocating for a tax system that provided competitive rates and modern international tax provisions, manufacturers in America kept our promises following the enactment of the 2017 tax reforms: we raised wages and benefits, we hired more American workers, and we invested in our communities. If we undo those reforms, all of that will be put at significant risk. Manufacturing workers will lose out on jobs, growth and raises. We should be building on that progress, not rolling it back. But the conclusion of this study is inescapable—follow through with tax hikes that give other countries a clear advantage and we’ll see far fewer jobs created in America.
Breitbart News reported, Biden’s combined spending proposals tied together with the $1.9 trillion coronavirus rescue package would end with a whopping $5.4 trillion in spending in the first year of his presidency.