Lesh
Diamond Member
- Dec 21, 2016
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What's in it and how is it paid for..
The bill would also add $80 billion in funding for Pell Grants, which Democrats say hasn't kept pace with the increasing cost of college.
The panel estimated that this proposal would keep the cost of child care at or below 7% of most families' income.
Manchin believes the program's solvency should be addressed before it is expanded.
"We need to stabilize it," he told reporters Friday, according to reports. "By 2026, you understand, the trust fund is going to be insolvent."
Under the enhancement, families receive $3,600 per child under age 6, and $3,000 per child age 6 to 18. Most families receive monthly payments of either $250 or $300 per child.
The full expanded child tax credit is available to individuals making up to $75,000 or married couples making up to $150,000.
While Mr. Biden has touted the tax credit's success in lifting children out of poverty, Manchin thinks Democrats' social spending package should impose work requirements for parents who qualify.
"You want to help the children and the parents that are basically providing for those children. There's no work requirements whatsoever. There's no education requirements whatsoever for better skill sets," he told CNN in an interview this month. "Don't you think, if we're going to help the children, that the people should make some effort?"
The House Ways and Means Committee has also endorsed permanent expansions of the earned income tax credit and child and dependent care tax credit.
The White House has previously estimated the plan would cost $225 billion over the next 10 years.
One provision that Manchin has objected to is the $150 billion "clean electricity performance program," which would pay utility companies that increase their renewable energy supplies by 4% per year. Companies that do not hit this benchmark would face financial penalties. The bill also provides significant funding for forest management and other wildfire control measures.
There are also measures to incentivize the buying of electric vehicles and the construction of charging stations; consumer rebates to homeowners who weatherfit their houses; and financial penalties for oil and gas producers for methane leaks, among other things.
For instance, the bill would authorize $5 million a year for the Small Business Administration for an entrepreneurial program for formerly incarcerated individuals.
The bill also directs $2.5 billion for the Justice Department to award competitive grants or contracts to local governments, community-based organizations and other groups to support intervention strategies to reduce community violence.
The corporate tax rate would rise from 21% to 26%, and the top income tax rate for Americans making over $400,000 would increase from 37% to 39.6%. The top capital gains rate would also go from 20% to 25%.
Democrats are also looking to beef up tax enforcement by the Internal Revenue Service as a vehicle for paying for the package.
The Joint Committee on Taxation estimates the tax changes spearheaded by Democrats would raise more than $2 trillion in revenue over 10 years, with roughly $1 trillion in tax increases from high-income Americans and nearly $1 trillion from corporate and international tax reforms.
What's in the Build Back Better Act:
- Two free years of community college
The bill would also add $80 billion in funding for Pell Grants, which Democrats say hasn't kept pace with the increasing cost of college.
- Child care and universal pre-K
The panel estimated that this proposal would keep the cost of child care at or below 7% of most families' income.
- Medicare expansion
Manchin believes the program's solvency should be addressed before it is expanded.
"We need to stabilize it," he told reporters Friday, according to reports. "By 2026, you understand, the trust fund is going to be insolvent."
- Extended child tax credit
Under the enhancement, families receive $3,600 per child under age 6, and $3,000 per child age 6 to 18. Most families receive monthly payments of either $250 or $300 per child.
The full expanded child tax credit is available to individuals making up to $75,000 or married couples making up to $150,000.
While Mr. Biden has touted the tax credit's success in lifting children out of poverty, Manchin thinks Democrats' social spending package should impose work requirements for parents who qualify.
"You want to help the children and the parents that are basically providing for those children. There's no work requirements whatsoever. There's no education requirements whatsoever for better skill sets," he told CNN in an interview this month. "Don't you think, if we're going to help the children, that the people should make some effort?"
The House Ways and Means Committee has also endorsed permanent expansions of the earned income tax credit and child and dependent care tax credit.
- Cut prescription drug prices
- Paid family and medical leave
The White House has previously estimated the plan would cost $225 billion over the next 10 years.
- Climate change
One provision that Manchin has objected to is the $150 billion "clean electricity performance program," which would pay utility companies that increase their renewable energy supplies by 4% per year. Companies that do not hit this benchmark would face financial penalties. The bill also provides significant funding for forest management and other wildfire control measures.
There are also measures to incentivize the buying of electric vehicles and the construction of charging stations; consumer rebates to homeowners who weatherfit their houses; and financial penalties for oil and gas producers for methane leaks, among other things.
- Lesser-known provisions
For instance, the bill would authorize $5 million a year for the Small Business Administration for an entrepreneurial program for formerly incarcerated individuals.
The bill also directs $2.5 billion for the Justice Department to award competitive grants or contracts to local governments, community-based organizations and other groups to support intervention strategies to reduce community violence.
How they plan to pay for it
Democrats have also included a tax plan to pay for the provisions in the bill.The corporate tax rate would rise from 21% to 26%, and the top income tax rate for Americans making over $400,000 would increase from 37% to 39.6%. The top capital gains rate would also go from 20% to 25%.
Democrats are also looking to beef up tax enforcement by the Internal Revenue Service as a vehicle for paying for the package.
The Joint Committee on Taxation estimates the tax changes spearheaded by Democrats would raise more than $2 trillion in revenue over 10 years, with roughly $1 trillion in tax increases from high-income Americans and nearly $1 trillion from corporate and international tax reforms.
