Is The American Rescue Plan As Good As They Say It Is? These 3 Facts Must Be Considered
On March 11, 2021, President Biden signed the American Rescue Plan as law. The law comes in wake of the CARES (Coronavirus Aid, Relief, and Economic Security) Act developed by the Trump administration, and it has the same goal in mind.
The law hopes to mitigate the economic impacts of Covid-19 on the American people.
As such, the plan is multifaceted and targets all the essential needs of the people. Subsidies range from direct payments to extended unemployment benefits and much more!
So what’s the catch?
That’s what people are so nervous about. Nothing is as good as it seems, there’s always a catch!
The following are vital pieces of information that you must know as the rescue plan takes effect.
- The rescue plan seeks to create jobs
A section of the rescue plan is called the American Jobs plan, and is designed to do just what its name implies.
Reports show that the plan is expected to utilize $2.29 trillion over the next 8 years. It focuses on community and transportation infrastructure, workforce development, research and development, and manufacturing.
As it modernizes the infrastructure available to the public, it will provide employment opportunities to people in underserved communities and create access for college students preparing to enter the labor force.
2. The rescue plan seeks to make family life easier
Another aspect of the rescue plan is the American families plan. Reports indicate that this plan employs 1.8 trillion dollars over 10 years. It aims to provide tax cuts to families and workers.
Additionally, it will provide universal preschool, two years of free community college, paid family and medical leave, and expanded health insurance tax credits to provide premium relief.
With benefits like these, America might become the best place to live on earth!
3. The rescue plan may see a rise in taxes
Remember that catch we spoke about earlier? This is it.
Reports reveal that both the American Jobs Plan and the American families plan will be funded by the “Made in America” Corporate tax plan.
The American Families Plan will be funded by “an increase in the top marginal tax rate for high-income individuals and families, returning it to its 39.6%, pre-2017 level, as well as raising the long-term capital gains rate for those earning over $1 million to 39.6% and instituting greater enforcement from the Internal Revenue Service.”
While the American Jobs Plan funding will see the corporate tax rate rise to 28% (currently 21%), an increased global minimum tax (21%), and the end of tax breaks for fossil fuel companies.
That last point about tax increases will not make corporate America happy.
Reports reveal that many are already challenging it and are seeking certain aspects of the plan to be scaled down.
Right now, everyone has their fingers crossed. The much-anticipated benefits might be stymied and tears of joy may become tears of sorrow.