US President Joe Biden will announce Thursday that he has reached an agreement with Senate Democrats to pass a $ 1.75 trillion social and climate spending bill, the White House reports.
The apparent agreement represents the culmination of months of negotiations and contains a broad set of programs that, if enacted, will have a profound impact on the lives of families with children, low-income Americans, and the renewable energy economy.
Measures that outlive the original plan include access to universal preschool education for all 3- and 4-year-olds, funded for at least 6 years. Also subsidized child care that limits what parents pay to 7% of their income and a one-year extension of the current extended child tax credit, which affects some 35 million households nationwide.
At the same time, tax credits are extended for 10 years for residential clean energy and utilities, including electric vehicles. In addition, the current Affordable Care Act grants related to the pandemic are extended for 4 years and the public health service Medicare will be allowed to cover the cost of hearing-related problems.
The plan, if approved, will impose a minimum tax of 15% on the profits of large companies, adopt the global minimum tax of 15% negotiated by Secretary of the Treasury, Janet Yellen, and apply an additional tax rate of 5% to individual income exceeding $ 10 million.
That rate would increase another 3% on revenue over $ 25 million. The Democrats’ plan also includes a 1% surcharge on corporate share buybacks, which the Biden administration sees as “too often used by executives to get rich rather than invest in workers and grow their profits.” business”. The final proposal does not include the capital gains tax on billionaires as initially considered.
The Biden administration plans to bolster the IRS with an injection of money to help the tax collector hire more auditors and upgrade its technology. As explained from the White House, the audit rates of those who earn more than a million dollars a year in the United States fell by more than 60% in the last decade.