The Biden administration released the outline of its American Families Plan on April 28, 2021. The focus of the plan is to extend the tax breaks enacted as part of the American Rescue Plan Act for lower- and middle-income taxpayers. These tax breaks would be paid for with tax increases and perceived loophole closers on those making more than $400,000 per year.
Some of the proposals that President Biden campaigned on are not included in the plan. (Key provisions area below.) Some Democrats in Congress are likely to try to add their own provisions to the plan. Like the American Rescue Plan Act, the American Families Plan, if enacted, will probably have to be enacted under budget reconciliation rules in the Senate and even then will require adjustments to keep every Democratic senator on board, as the tax increase provisions are not likely to attract Republican support.
This might include another provision that some Democrats in higher-tax states are pushing for — repeal or modification of the state and local tax deduction limitation enacted as part of the Tax Cuts and Jobs Act.
Most commentators do not expect passage of the American Families Plan proposals until close to the August recess. The American Families Plan does not include any proposed effective date for these provisions, although it would be assumed that the extension of the lower- and middle-income tax breaks would be effective starting in 2022 to prevent any lapse in those provisions.