FACT SHEET: BUILD BACK BETTER AGENDA WILL LOWER COSTS FOR WORKING FAMILIES
The investments in the Build Back Better agenda will lower costs for health care, prescription drugs, and child care, making life more affordable for middle-class families. The Biden administration will fund the agenda by requiring the wealthy and large corporations pay their fair share of taxes, without raising taxes on Americans who make less than $400,000 by a penny.
Here’s how the investments in President Biden’s full Build Back Better agenda will lower costs on key expenses for millions of Americans, making middle-class life more affordable:
Lower Taxes On Working and Middle-Class
- Nearly a third of adults with children struggle to pay expenses like food, rent, health care, and transportation.
- The Build Back Better agenda will expand the Child Tax Credit, lowering taxes for middle class families by providing 39 million households and nearly 90% of children in the U.S. a major tax cut and cutting the child poverty rate in half.
- Both middle-class American families and economists are already praising the expanded Child Tax Credit passed in the American Rescue Plan, while Treasury Secretary Janet Yellen is advocating to make the Child Tax Credit permanent.
Lower Prescription Drug Costs
- Americans spent nearly $460 billion on drugs, accounting for 16.7% of total health-care spending.
- The Congressional Budget Office and JCT estimate that allowing Medicare to negotiate prescription drug prices would lower spending by about $456 billion.
- The Build Back Better agenda will lower prescription drug costs for Americans by letting Medicare negotiate drug prices, so consumers are no longer at the whim of pharmaceutical companies.
Lower Childcare Costs
- Before the pandemic, parents forewent approximately $30-35 billion in income to pay for child care.
- Access to affordable child care could increase the lifetime earnings for women with two children by about $94,000. It would also boost the collective lifetime earnings of a cohort of 1.3 million women by $130 billion.
- The Build Back Better agenda will lower child care costs and make universal preschool a reality, providing parents access to high-quality programs in the setting of their choice.
Lower Health Care Costs
- Nearly 30 million Americans were uninsured when President Biden took office, coverage under the ACA (even with the ACA’s subsidies) was too expensive for many families, and millions of people were locked out of coverage completely because their state refused to expand Medicaid.
- The Build Back Better agenda will lower health care costs and premiums for those buying coverage through the ACA by extending the American Rescue Plan’s cost savings; adding dental, vision, and hearing coverage to Medicare; and closing the Medicaid gap for low-income Americans.
Lower Education Costs
- Only 44% of 4-year-olds and 17% of 3-year-olds are served by public preschool programs, and lack of preschool disproportionately hurts low-income families and families of color.
- Free community college will increase access to college for millions of Americans, particularly Black and brown students, providing a pathway to education to students who would otherwise be deterred from going to college by the prospect of going into debt.
- The Build Back Better agenda will make two years of community college tuition-free and make universal preschool a reality, providing parents access to high-quality programs in the setting of their choice.
Lower Threats of Climate Change
- So far this year, there have been at least eight weather and climate disasters with losses exceeding $1 billion each in the U.S. — a number that will only grow if we continue to ignore climate change.
- The Build Back Better agenda will lower the threats of climate change to tackle the crisis and advance environmental justice by creating good-paying, union jobs, establishing a clean energy standard, expanding and extending clean energy and EV tax credits, and enlisting a new Civilian Climate Corps.