Is the American Families Plan Too Expensive? Take Our Poll
President Joe Biden introduced his social benefits proposal, The American Families Plan, in a joint session to Congress this week. Many of the pledges included extending benefits that have been given as part of the Covid-19 relief stimulus package. Others focus on educational improvements and nutrition credits to cover wider swaths of young children.
The estimated cost to enact this legislation is more than $2 trillion and is in addition to/separate from his infrastructure proposal, which was introduced earlier this year. Biden’s plan is said to be one of the most ambitious social benefits plans in recent history. According to Columbia University, the American Families Plan has the potential to cut child poverty by more than half this year alone.
The plan has been met with criticism by some for its expense and the involvement the government will have in people’s lives as a result of benefits given. Reuters points out that raising corporate taxes, central to Biden’s revenue-raising scheme — could affect lower earners and investors. The theory, they wrote, is that a higher tax rate over time reduces a company’s output, as investing in companies becomes less attractive, resulting in lower overall profit. The trickle-down eventually affects investors and workers. The general consensus is that workers bear roughly 20-25% of the impact.
The plan will have to go through Congressional approval before becoming law.
We want to hear from you: If enacted, the American Families Plan will cost taxpayers more than $2 trillion. Is it worth it?
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