President Joe Biden’s American Families Plan would cost far more than the White House estimates, and it would increase government debt while decreasing GDP, according to a study released Wednesday.
The administration’s latest stimulus plan, which officials priced at $1.8 trillion, would actually cost American taxpayers $2.5 trillion over the 10-year budget window, about $700 billion more than the White House’s estimate, the Penn Wharton Budget Model estimated.
The school explained that the sizable difference in headline cost projections is thanks to a disagreement over how much the plan’s tax credits, as well as the universal pre-K and free community college provisions, would require.
