Biden's third big spending proposal could reshape the role of US government

Hey Big Spender... It's a song from a 60s musical – and the chorus of President Biden's domestic policy. On Wednesday, the President delivered his first speech to Congress. Biden detailed an ambitious agenda that could transform the role of the federal government as we know it. The headliner was a $1.8T spending plan, the third of Biden's "big three" proposals.

• $1.9T: Cost of the massive stimulus passed in March (aka: American Rescue Plan).
• $2.3T: Cost of Biden's infrastructure makeover proposal (American Jobs Plan).
• $1.8T: Cost of the social spending plan unveiled this week (American Families Plan).
• $6T: The total tally, which would largely be paid for by raising taxes on corporations and the wealthy.

It's a big one... The American Families Plan features $1T in spending on things like: free pre-k and community college, and federal paid family and medical leave. $800M would go toward tax credits, including extending the Covid-era expanded child tax credit. The plan would be paid for by hiking the marginal income tax rate for the 1%, and raising investment-related tax rates for those making $1M+ per year.

• Pros: It could boost consumer spending, increase education, and improve equality of opportunity.
• Cons: It could reduce private investments and entrepreneurship, increase the national debt, and possibly spur inflation.