Have a nice Wednesday and welcome back to On The Money, where we prepare for something else shared session experience. I’m Sylvan Lane, and here’s your nightly guide to everything to do with your bills, bank account, and bottom line.
THE BIG DEAL – This is what Biden’s $ 1.8 billion plan for American families says: President BidenJoe BidenTulane adds Hunter Biden as a guest speaker on media polarization Trump on the resumption of MAGA rallies: report Biden’s inevitable foreign policy crisis MORE On Wednesday, the American Families Plan will be unveiled, an ambitious package that includes $ 1 trillion in new spending and $ 800 billion in tax credits aimed at increasing access to preschool and community colleges, as well as childcare and Extend health care significantly.
- Biden will explain the proposal in a speech to a joint congressional session where he is expected to set his agenda for the coming months.
- The centerpiece of the speech will be the Family Plan, which will be rolled out less than a month after Biden unveils a $ 2.3 trillion infrastructure proposal.
But we already have details of what Biden will propose tonight.
- The American Families Plan has a $ 200 billion program that provides universal pre-kindergarten for all three- and four-year-olds.
- $ 109 billion for a tuition-free community college for any American who wants it.
- $ 85 billion to increase Pell grants for low-income and minority students.
- More than $ 4 billion in major scholarships, certification, and support programs for teachers.
- The plan would build on the provisions of the American Rescue Plan by indefinitely extending the Affordable Care Act tax credits and making the extension of the childless worker tax credit permanent.
- It would make the child tax credit permanent fully available to the families with the lowest incomes, while other aspects of credit expansion, such as increasing the loan amount, will expand through 2025.
The proposal includes the creation of a national program for paid family and sick leave, more funding for catering programs for children and low-income families, and reform of unemployment insurance. The Hill’s Brett Samuels and Morgan Chalfant break it open here.
The tax increases: All of these new investments will be accompanied by a number of proposed high income tax hikes which, on their own, could be a major political boost.
The Naomi Jagoda of the Hill leads us through Biden’s tax plan here.
Read more about the American Families Plan:
- President Biden will speak to Congress on Wednesday evening tense terms with the business community for proposals to increase the corporate tax rate and nearly double the capital gains tax for high-income Americans.
- Key Democratic lawmakers said Wednesday they would keep pushing for that full expansion The Presidential Tax Credit (CTC) is set to be permanent after President Biden released a proposal that would only cement part of the expansion.
- The Treasury Department on Wednesday announced more details on President Biden’s proposal to increase IRS funding Strengthen compliance According to tax laws, these initiatives would generate net sales of $ 700 billion over a decade.
Run the day
Powell is confident the Fed can get inflation under control: Federal Reserve Chairman Jerome Powell said Wednesday that rising inflation will offset itself as one-off, pandemic-related statistical quirks and supply chain disruptions subside.
During a press conference, Powell argued that the recent spike in the rate of price increases is almost entirely due to economic activity picking up after the collapse during the coronavirus recession outbreak.
“We’ll likely see some upward pressure on prices,” Powell said after the Fed announced that it would keep rates near zero percent and maintain the current rate of bond purchases in the reopening process. ”I Explain why here.
- The US is expected to grow between 6 and 8 percent in 2021 as it contains the spread of COVID-19 and brings millions of people back to work.
- Critics fear Biden’s recent $ 1.9 trillion in economic aid, plans for future spending, and loose monetary policy from the Fed will boost inflation as the US is already booming.
- The consumer price index (CPI), a closely watched indicator of inflation, rose 2.6 percent between March 2020 and last month, and minus food and energy costs 1.7 percent.
However, Powell said Wednesday that summer inflation would continue to rise due to two short-term factors: The statistical effect of comparing a fall in demand with a sharp surge in demand and congestion caused by the reopening of the global economy.
“An episode of one-off price increases in the reopening of the economy is not the same as and is unlikely to result in sustained higher inflation year over year into the future,” he said.
TO TAP TOMORROW:
- The Senate Banking Committee will hold a hearing on “The Dignity of Work” at 10 a.m.
- The Senate Finance Committee holds a social security hearing at 10 a.m. during the COVID-19 pandemic
- A House Financial Services subcommittee will hold a hearing at 12:00 noon to close the racial and gender wealth gaps
- A House Ways and Means subcommittee will hold a hearing on infrastructure investments at 1:30 p.m.
GOOD TO KNOW
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