Biden eyes tax hike on wealthy to fund child care and education
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President Biden is gearing up for another battle to get a huge spending plan through Congress. The plan covers child care and education, what he calls “human infrastructure.” The issue? How to pay for it.
In roughly half the country, infant care is now more expensive than college tuition. Brisandi Ruiz of Greenbelt, Maryland, works two jobs just to afford daycare for her 3-year-old son.
“I work every day, Monday to Friday, up to 5 in the clinic. And then when I come here, 6 to 8:30 Monday to Friday and 9 to 8 on Saturday and Sunday. So I don’t have free days,” she said.
The White House wants to help parents like her with what it’s calling the “American Family Plan,” a roughly $1.5 trillion proposal that would fund free prekindergarten and community college. It would also extend the child tax credit and create a national paid leave program.
To pay for all that, the Biden administration is considering raising the top marginal income tax rate to 39.6% and nearly doubling the capital gains rate for those making more than $1 million a year.
Republicans are already pushing back. One called it a “terrible idea” that “could actually lead to a decrease in tax revenues.”
The White House disagrees.
“The president’s calculation is that there’s a need to invest in childcare. There’s a need to invest in early childhood education. His view is that that should be on the backs — that can be on the backs of the wealthiest Americans who can afford it, and corporations and businesses who can afford it,” said White House press secretary Jen Psaki.