American Families Plan

If you are an HR and Payroll professional, you are well aware that the 46th president of the United States of America, Joe Biden, has been on a mission to lower the poverty levels in the country with the implementation of the American Families Plan, by considering the burden children face due to their parents’ financial hurdles. In short, the American Families Act is expected to lessen this impact. Singularly focusing on children, the Act will protect children from harsh economic times and lessen the overall strain on parents’ incomes.

Tax the rich

However while the president’s enthusiasm to help struggling families, especially during the global pandemic, is commendable, it has not elicited positive responses from some. This might be due to the president’s decision to finance the plan through high-income earners’ taxation.

So why the trouble…

From a superficial perspective, the American Families Act seems to be a strategy to primarily end poverty. However, the plan’s content reflects the president’s desire to create some order and enable a better work-life balance for low-income families. Through this plan, eligible individuals will be able to enjoy longer paid maternity leave and ample time to take care of ailing families. In turn, placing mothers in a more financially stable position to cater to their young ones before resuming work.

The act also recognizes individuals in circumstances that require special resources and ample time, to handle and recover from traumas. For example, by providing domestic violence victims ample time to recover from the incidents.

So what does this mean for HR professionals?

Giving all these situations some degree of attention ensures that employees are in the right headspace to be sufficiently productive. In view of these potential benefits, opponents identify key weaknesses that may stifle the plan’s implementation. For example, eligibility will be complex to determine and is more grueling than beneficial. Secondly, skepticism has been expressed towards the possible long-term benefits of the plan as taxes may have to be increased for the plan to remain tenable on a long-term basis.

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