President Joe Biden will call for rescinding tax cuts by his predecessor Donald Trump to make the rich pay for a huge spending program for middle-class families, senior administration officials said on Wednesday.
Biden will use his speech at a joint session of Congress to unveil the $ 1.8 trillion plan for American families, funded by ending Trump’s tax cuts and closing loopholes used by the wealthiest to evade payment from them, officials said.
“The president will propose a package of measures to ensure that the richest Americans pay the taxes they owe, while ensuring that no one who earns less than $ 400,000 a year sees their taxes increase,” he said. said one official, who asked not to do so. be identified, told reporters.
The spending plan, which will need to be approved by a deeply divided Congress, would devote money to preschool education, child care, higher education and other building blocks of what the Biden administration claims to be rebuilding the country’s battered middle class.
Some $ 800 billion would be sent in tax cuts for low-income people and an additional $ 1 trillion would be invested.
The strategy, an official said, is “to build back better and generate a strong and inclusive economy for the future.”
Tax credits will reduce child poverty and cut the cost of child care in half, allowing mothers to stay in the workforce longer, the official said, predicting “a larger workforce. , more productive and in better health ”.
The plan to pay for the huge government program will likely be a lightning rod for Republican members of Congress.
But the White House is banking on voter support by firmly targeting tax increases on the super rich.
They would pay a maximum income tax rate of 39.6%, ending the 37% cut adopted under Trump.
The Biden plan would also close loopholes and tax breaks on capital income, while raising “billions,” according to the White House, by tightening taxes on inherited wealth.
Officials said the measures would be enough to pay off the nearly $ 2 trillion spending program within 15 years – and make the country fairer.
“The president’s plan makes it clear where we should reduce the tax burden and where he thinks we should raise taxes appropriately,” an official said.
“There is broad support among the American people for this approach, there is broad support from the American people for the investments these resources are going to go to,” he said.
“These reforms are fundamentally about the fairness of the tax code.”
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