Biden Will Seek Tax Increase on Rich to Fund Child Care and Education

The president’s American Family Plan, which remains in flux, does not currently include an effort to expand health coverage, as administration officials had previously planned.

WASHINGTON — The next phase of President Biden’s $4 trillion push to overhaul the American economy will seek to raise taxes on millionaire investors to fund education and other spending plans, but it will not take steps to expand health coverage or reduce prescription drug prices, according to people familiar with the proposal. Administration officials had planned to include a health care expansion of up to $700 billion, offset by efforts to reduce government spending on prescription drugs. But they have decided to instead pursue health care as a separate initiative, a move that sidesteps a fight among liberals on Capitol Hill but that risks upsetting some progressive groups that have pushed Mr. Biden to prioritize health issues. The president is set to outline his so-called American Family Plan, which includes measures aimed at helping Americans gain skills throughout life and have more flexibility in the work force, before his first address to a joint session of Congress next week. Its details remain a work in progress and could change in the days before the announcement.