Biden administration revealed on Wednesday an investment plan of $1.8 trillion in education programs and support for families with young children.
Joe Biden presents $1.8 trillion education plan funded by taxes for the wealthy (Image: Patrick Semansky-Pool/Getty Images)
For the funding to be approved, the proposal must be approved by the US Congress.
These measures are an expansion of public policies against poverty that were already adopted during the Covid-19 pandemic.
Biden wants to make permanent the benefit that gives poor families money to buy food – this was a program implemented because of the coronavirus: with the closure of schools, families had to start giving more meals to the children.
“The pandemic has shown that there is a need to respond to food insecurity,” said Kelliann Blazek, an adviser to the US government in the area of agriculture. Many of the proposals use lessons that were learned during the pandemic, she says.
What are the initiatives?
Joe Biden’s government wants $200 billion to ensure that all 3 and 4 year olds are in daycare. The projection is that about 5 million children will benefit from this, and that, on average, each family will save $13,000;
Free university for two years for everyone – including the children’s of immigrants. This has an estimated cost of $109 billion;
Increase of a scholarship for poor students, which would be $1,400;
$46 billion for historic universities linked to Afro-descendant and Native American communities;
$9 billion scholarships and training for teachers;
$225 billion subsidies to social workers serving children;
A national program for sick leave in the amount of $225 billion. The workers would have a medical license of $4,000 per month;
$200 billion to temporarily reduce the insurance premium for the simplest plans;
Extend child tax exemptions to 2025. Each child between the ages of 6 to 17 would imply a $3,000 tax return.
Where would the money come from?
Here are some of the sources of funding that the Biden government proposes:
Increased surveillance by the IRS to audit high-income people. Financial institutions are required to report income from their investments and business activities in a manner similar to that made for employees. This should bring in $700 billion per year.
Increased the highest income tax rate from the current 37% to 39.6% (it was the rate before the Donald Trump administration).
Taxpayers who earn at least $1 million a year today pay 20% capital gains tax (for example, if they sell shares or other assets). That rate would rise to 39.6%.