In his first address before a joint session of Congress on Wednesday, President Joe Biden unveiled a new $1.8 trillion spending proposal that he is calling the American Families Plan.
But while Biden has touted the proposal as one that would benefit low- and middle-class families, Breitbart reports that according to a new study from the National Association of Manufacturers (NAM), the American Families Plan would strike a huge blow to the American economy.
The study, authored by Rice University economists John W. Diamond and George R. Zodrow, found that Biden’s proposal as outlined Wednesday would cost the American economy as many as 1 million jobs over its first two years in effect.
The study also reported that the plan would result in America’s GDP decreasing by $117 billion, among other frightening figures.
In a statement, Jay Timmons, the president and CEO of NAM, told Breitbart that Biden’s plan would roll back all the progress brought on by Republicans’ 2017 tax reform package.
“After decades of advocating for a tax system that provided competitive rates and modern international tax provisions, manufacturers in America kept our promises following the enactment of the 2017 tax reforms: we raised wages and benefits, we hired more American workers, and we invested in our communities,” Timmons said.
“If we undo those reforms, all of that will be put at significant risk. Manufacturing workers will lose out on jobs, growth, and raises,” he added.
“We should be building on that progress, not rolling it back,” Timmons declared. “But the conclusion of this study is inescapable — follow through with tax hikes that give other countries a clear advantage and we’ll see far fewer jobs created in America.”
Crunching the numbers
Among the provisions included in Biden’s American Families Plan is a guarantee that low- and middle-income families won’t have to put more than 7% of their income toward childcare for children up to age 5, as Breitbart reports.
The White House also says the plan would “expand the tax credit for every child in a family,” including “up to $3,000 in a ‘child tax credit’ for children over  and up to $3,600 for children under ,” Breitbart reported.
According to CNBC, Biden has promised that the plan “will be fully offset in 15 years in part by raising the amount of taxes paid by the richest Americans.”
The results of NAM’s study make clear, however, that the consequences of such a measure may be far greater than the rewards.