Critics have already taken advantage of one of the most controversial measures: an additional $79 billion for the Internal Revenue Service over the next decade to expand audits and strengthen enforcement.
There are also a number of welfare, social and climate provisions in the 2,465-page bill that have sparked opposition from moderates in the Democratic party and Republicans.
Democrats now realize they won’t get the package unless it’s less than $3.5 trillion. The party now faces a war between its factions over what should and should not be included.
Two free years of community college
The legislation provides for two years of free community college for all students. The projected cost is $108 billion.
The bill would also add $80 billion in funding for Pell Grants for families with total incomes up to $50,000, which Democrats say has not kept pace with rising college costs.
The plan includes $3 billion for tree equity, $12 billion for electric cars, $1 billion more to convert government facilities into “high-performance green buildings” and millions more for gender identity and bias training.
The legislation would also spend billions of dollars tackling climate change, including President Biden’s proposed “Climate Change Corps.” It would get $7.5 billion for conservation on public lands.
Race- and gender-related issues mean smaller expenditures, but are likely to put Republicans and moderate Democrats in trouble.
The bill includes $25 billion for nonprofits to provide “anti-discrimination and prejudice training” in health care.
Biden spoke to Republicans and Democrats Wednesday night while attending Congressional baseball game
Extended child discount
Democrats have extended the 2021 child tax credit in their $1.9 trillion COVID-19 relief plan, and now want to extend it through 2025.
Under the increase, families will receive $3,600 per child under age 6 and $3,000 per child age 6 to 18. Most families receive monthly payments of $250 or $300 per child.
The full extended child tax credit is available to individuals earning up to $75,000 or to married couples earning up to $150,000,
Tax cuts for workers without children
The White House says about 17 million low-wage workers will benefit from the increase in the income tax credit from $543 to $1,502.
Paid medical leave for family
The US would receive extended paid leave, 12 weeks of paid family leave and medical leave. The legislation would replace at least two-thirds of income, up to $4,000 a month, while the lowest-paid workers would receive 80 percent of their income.
Childcare and universal pre-K
Every family that registers will receive childcare for children from 0 to 5 years. In total, the plan allocates approximately $450 billion to reduce childcare costs and provide two years of universal pre-K for 3- and 4-year-old children. older people, according to the House Education and Labor Committee.
The panel estimated that this proposal would keep childcare costs at or below 7 percent of most families’ incomes.
This heavily debated provision would extend Medicare to cover dental, hearing and vision services.
Lower the prices of prescription drugs
Another important part of the bill is aimed at helping lower the prices of prescription drugs.
Americans pay on average two to three times as much as people in other countries for prescription drugs, according to the White House.
The administration will reduce drug costs by letting Medicare negotiate prices and eliminate the impact of drug companies.
How does the Biden administration plan to pay for it?
Democrats have included a tax plan to pay the huge bill, which is primarily aimed at the wealthy.
The corporate tax rate would rise from 21 percent to 26 percent, and the top income tax rate for Americans earning more than $400,000 would rise from 37 percent to 39.6 percent. The highest capital gains rate would also go from 20 percent to 25 percent.
Biden has promised he won’t tax anyone who makes less than $400,000, but Republicans insist it just won’t happen.
Democrats also want to spend $79 billion in additional funding to ramp up IRS enforcement and try to crack down on tax dodgers.
This includes a plan that requires banks to report transactions over $600 to the IRS.
According to the Office of Tax Analysis, this action against undisclosed revenue is expected to bring in $463 billion over the next decade. That money would be used to partially fund Biden’s $3.5 trillion reconciliation plan.
The Joint Taxation Committee estimates that the tax changes led by Democrats will bring in more than $2 trillion in revenue over a 10-year period, with about $1 trillion in tax increases by high-income Americans and nearly $1 trillion by corporates. – and international tax reforms.
How much will it really cost?
The White House has suggested that the massive spending plan will cost “zero dollars.”
But an analysis by the Committee on a Responsible Federal Budget (CRFB) found that the agenda’s proposals would require the US to borrow $1 trillion directly, and expects nearly $3 trillion in government debt over the next 10 years. added.
The former measure, passed by the Senate in August, would offset its own costs by only about $200 billion, according to the CRFB. That leaves $350 billion.