'100 Days in Office' Biden's Pressure... Democratic-Republican Conflict Expands

$1.8 Trillion US Family Planning Unveiled
Infrastructure Investment and Wealth Tax Debate Expected to Spread
Likely to Show Tough Stance on China
Possible Mention of North Korea Relations

Barriers have been installed in front of the U.S. Capitol, where President Joe Biden will deliver his first State of the Union address on the 28th.
[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] U.S. President Joe Biden's joint congressional address marking his 100th day in office is imminent.

Domestically, the unveiling of the $1.8 trillion (2,000 trillion won) American Families Plan is expected to spark inevitable debates over tax increases on the wealthy. Directions on foreign relations with North Korea, China, and Russia are also anticipated to be outlined.

According to U.S. media, President Biden will deliver his joint congressional address at 9 p.m. local time on the 28th.

Through the speech, President Biden plans to directly unveil the "American Families Plan." The plan centers on spending $1 trillion over a decade on education and childcare, and providing $800 billion in tax credits to middle- and low-income households.

The American Families Plan, announced by the U.S. government ahead of the speech, focuses on filling gaps in the U.S. education sector. Specifically, it includes free kindergarten education for children aged 3 to 4, free two-year community college education, childcare subsidies, expanded paid family leave, reduced health insurance premiums, and expanded child tax credits.

The issue lies in funding. Following his earlier proposal to raise the corporate tax rate to 28% for the $2.3 trillion "American Jobs Plan," President Biden is expected to request "tax increases on the wealthy," including expansions of income and capital gains taxes.

The plan is to raise the current top federal income tax rate from 37% to 39.6%, and to increase the top capital gains tax rate from the current 20% to 39.6%. The Internal Revenue Service (IRS) also plans to invest $80 billion over 10 years to secure an additional $700 billion in tax revenue.

In addition, President Biden is expected to request Congress to pass stricter gun safety laws, police reform bills, and immigration-related legislation during the speech.

The opposition Republican Party is expected to strongly oppose, arguing that large-scale spending will worsen fiscal health and that tax increases could lead to reduced investment and higher unemployment, signaling significant challenges ahead.

Republican Senate Minority Leader Mitch McConnell criticized ahead of Biden’s speech, stating, "The Biden administration’s first 100 days have focused not on national unity but solely on strengthening the progressive base."

The political media outlet The Hill reported, "The White House hopes the two budget bills will pass by summer but faces tough circumstances," adding that the Democrats are not ruling out using budget reconciliation, which would allow them to push through legislation without Republican support.

The Hill also reported that bipartisan senators have begun early-stage discussions on the jobs plan. They are focusing on a limited infrastructure investment package centered on roads, bridges, railways, and ultra-high-speed communication networks, which is more restrained compared to President Biden’s proposed plan.

Senator Joe Manchin, a Democrat who has called for scaling back infrastructure investment plans, explained, "We are really looking for what this country truly needs."

Attention is also focused on remarks regarding foreign relations. President Biden is expected to mention a tough stance on U.S.-China relations. As this is his first congressional address, there is also interest in whether he will comment on relations with North Korea.

Meanwhile, due to the COVID-19 pandemic, President Biden’s speech will be conducted on a minimal scale. Unlike the usual attendance of over 1,600 people, only about 200 will attend. Many lawmakers will watch the speech via video conference. Most cabinet members will not attend, and unlike usual practice, no designated survivor will be appointed to stay away from the speech.