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American Families Plan

Following the passage of the American Rescue Plan and the Presiden’s proposal for infrastructure, American Jobs Plan, the Administration announced its American Families Plan, which they argue is “an investment in our kids, our families, and our economic future.”

President Biden’s American Families Plan focused on three buckets of policy:
 • Add at least four years of free education. The American Families Plan will make transformational investments from early childhood to postsecondary education so that all children and young people are able to grow, learn, and gain the skills they need to succeed. It will provide universal, high quality preschool to all three- and four- year-olds. It will provide Americans two years of free community college
 • Provide direct support to children and families. The American Families Plan will provide direct support to families to ensure that low- and middle-income families spend no more than seven percent of their income on child care, and that the child care they access is of high-quality. It will also provide direct support to workers and families by creating a national comprehensive paid family and medical leave program that will bring America in line with competitor nations that offer paid leave programs.
 • Extend tax cuts for families with children and American workers. The American Families Plan will extend key tax cuts in the American Rescue Plan that benefit lower- and middle-income workers and families, including the Child Tax Credit, the Earned Income Tax Credit, and the Child and Dependent Care Tax Credit. The American Families Plan will also extend the expanded health insurance tax credits in the American Rescue Plan.

Other key aspects include an effort by the Administration to raise the corporate tax rate, additional reforms to unemployment insurance, and further, close tax loopholes that they believe favor the wealthy. As with all proposals, this is a just a proposal. House Democrats will be taxed with drafting legislation addressing the President’s priorities.

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