A new economic analysis said Wednesday that President Joe Biden’s American Families Plan, which proposes to earmark hundreds of billions for education and child investment, would cost about $700 billion more over 10 years than the plan projects.
The White House has said the plan will cost $1.8 trillion over the next decade. According to the study by the Penn Wharton Budget Model, about $2.5 trillion would be spent over that time for the sweeping proposal.
The Penn Wharton Budget Model is a nonpartisan, research-based economic initiative at the University of Pennsylvania.
The plan would pay for programs like universal prekindergarten, two years of tuition-free community college, expanded family and medical leave and provide monthly payments of at least $250 to low-income parents.
The proposal also would provide $800 billion in new tax cuts that benefit lower- and middle-income workers and families. Much of the plan would be paid for by tax increases for the wealthy — including a hike to the capital gains tax rate, increased IRS auditing enforcement on richer Americans and businesses and a higher top income tax rate.
The Penn Wharton Budget Model also said Biden’s plan would increase government debt by almost 5% and decrease gross domestic product by 0.4% by 2050. It would raise $1.3 trillion in new tax revenue over the 10-year period, from 2022 to 2031, which would fall short of paying for the entire package.
The study said the economic loss would result from the larger debt outweighing the gains from new programs.
The gap, the study says, is found mainly in differences concerning the funding required for the tax credits and the universal pre-K and free community college provisions. Researchers assumed the proposals would extend beyond the 10-year budget window.
The proposal hikes the top individual tax rate from 37% to 39.6% for the top 1% of earners. The capital gains tax rate for households making over $1 million would also rise to 39.6%.
Americans earning more than $400,000 per year would pay a 3.8% Medicare tax and the plan would tax unrealized capital gains above $1 million at death.
The study provided a breakdown of how much the revenue-raising provisions in the plan would generate.
It said additional revenue raised from more aggressive IRS tax collections from richer Americans would amount to $480 billion, and the income rate hike for the wealthiest Americans would be worth $111 billion. Another $376 billion would come from taxing gains at death, long-term capital gains and carried interest at ordinary rates.
Extending the limitation on business losses for non-corporate taxpayers would net another $162 billion and the Medicare tax about $139 billion.
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There is an open end to any number this administration throws out. The economics genius on The Squad is proof positive.
WHAT geniuses.. I DOUBT the entire biden admin has a single one..
How do you change— change the U.S. from a capitalist system’,
Into a Socialistic Democrat Party government controlled system. ??
1. Healthcare — Control healthcare and you control the people.
2. Welfare — Take control of every aspect of their lives (Food, Housing, and Income).
3. Education — Take control of what people read and listen to — take control of what children and young people learn in schools and colleges.
4. Religion — Remove the belief in the God from the Government and schools.
5. Class Warfare — Divide the people into the wealthy and the poor. This will cause more discontent and it will be easier to take from the wealthy and give to poor. Until there are only the poor.
6. Debt — Increase the debt to an unsustainable level.
7. Gun Control — Remove the ability for the people to defend themselves from the Government. (“Socialist Democrat Party State”)
8. Poverty — Increase the poverty level as high as possible. Poor people are easier to control and will keep socialists in power if they are providing everything for them to live. Encourage, protect and support multi-millions of illegal immigrants who are poor, uneducated and disease ridden.
9. Allow illegal immigrants to vote and hold government positions.
Do these look like the tactics of the Democrat Party??
Socialism is an economic and political system where the GOVERNMENT regulates how a business is run and spreads the wealth
evenly where capitalism is regulated by the owners of the business. Wealth is then given to the owners to then give workers hourly wages.
Socialism takes from those who go to school and WORK.
And GIVES to those who DO NOT go to school and DO NOT work.
Do you really want the multi-millionaire corrupt professional politicians
to have total control of YOUR money and YOUR life?? 🙁 🙁 🙁
The “Socialist Democrat Party State” political officers, Gestapo, Woke and Cancel Culture are just getting started. You will obey, be loyal and support the “Socialist Democrat Party State” or you will be classified as
“Enemies of the State”.
24 Aug. 2020 – Monday on MSNBC’s “Live,” House Speaker Nancy Pelosi (D-CA)
referred to President Donald Trump and his Republican allies as
“domestic enemies” and “enemies of the State”.
“From each according to his ability, To each according to his need” Straight out of the Marx playbook.
BUT like Margret Thatcher said.. THe problem with socialism is you ALWAYS RUN OUT OF other people’s money!
Yep, everything is “free” and the sheep that vote for these communists are dumb enough to believe these communists.
Sheep being lead down the path to slaughter.
Free to their BLIND EYES…
So Biden’s American Families Plan Would Cost More Than $700 Billion More Than Projected, really? In the past, whenever Democrats have been power and come up these exotic, expensive proposals, the actual costs are 3 to 4 times the original estimate. And with this new bunch, spending trillions is just a number to them and just where is the money going to come from? From the 97% of the income earners in the form of higher taxes, and we must not forget the higher corporate taxes that we, the consumers pay, through higher prices. I’m not an economist, nor college educated, but to hear this bunch brag that middle and lower income earners won’t pay more is total BS.
I like to refer the BS from this administration as “Bear Scat”, not Bovine Scatology. One is far more dangerous to be confronted with than the other, if you get my drift.