President Joe Biden will call for a historic investment that would provide free preschool to all three and four-year-old children as part of his sweeping American Families Plan, which will be announced during Wednesday’s address to Congress.
The more than $1 trillion plan would, according to the AP, benefit five million children and save the average family $13,000. The plan also includes free community college and would extend the expansion of the federal child tax credit.
“These investments will give American children a head start and pave the way for the best-educated generation in U.S. history,” the administration said in a fact sheet about the plan.
According to NBC News, the president’s plan will ensure that low to middle-income families don’t pay more than seven percent of their household income on child care. It would also establish a national paid leave program that would include $4,000 a month for 12 weeks for parental, family, or personal leave.
To pay for the plan, Biden will push for an increase in taxes on the extremely rich. The president’s initiative would increase the top tax rate on the wealthiest Americans to 39.6 percent — restoring it to the level it was before President Trump and Republicans lowered it in 2017 — and raise the capital gains tax rate on incomes above $1 million to 39.6 percent.
“We believe that it’s not only fair, but it would also help to reduce the kinds of tax avoidance that significantly undermines trust and fairness in the tax code itself,” Brian Deese, director of the White House National Economic Council, told reporters at a Monday briefing. “The revenue from this provision would help invest directly in our kids and our families and our future economic competitiveness.”