Here’s everything we know about President Biden’s ‘Build Back Better’ plan – a broad set of infrastructure and job proposals designed to keep up with his flagship $ 1.9 trillion US bailout – which will be unveiled. Wednesday and would be funded by even more new tax revenue than previously thought.
The package will be split into two separate proposals, the White House said over the weekend, and funded largely by new taxes on big business and the ultra-rich.
The first part of the plan will be the focus of Biden’s speech this week: money for physical infrastructure such as roads, bridges, rail lines, water and sewer systems, power grid improvements, money to expand broadband access, depending on the New York Times, as well as money for US manufacturing, clean energy and energy efficiency projects.
The second part of the plan will focus on what many call the “care economy” – jobs, health care and child care – and will likely include money for universal preschool, free community college, time off. paid and a number of provisions to support women workers, who have dropped out of the labor market in record numbers over the past year.
White House press secretary Jen Psaki said on Sunday that more details on the second half of the plan would come next month.
the Washington post reported Monday that the package will include up to $ 4 trillion in new spending, which will be partially funded by more than $ 3 trillion in revenue from further tax hikes – far more tax revenue than the $ 1 trillion of tax increases initially planned by the White House.
According to To post, the tax hikes have been increased to address concerns that the gap between spending and revenue in the original proposal was too high and could destabilize the economy.
2.3 million. That’s the number of jobs S&P Global expects Biden’s plan to create by 2024.
“Stimulus is helping build the bridge for the recovery to reach the other side, but an investment in infrastructure is the fuel to jumpstart the economic engine,” said Beth Ann Bovino, chief US economist at S&P Global.
Biden campaigned on a platform of aggressive tax hikes for big business and the ultra-rich, including raising the top personal income tax rate from 37% to 39.6% and by taxing capital gains as ordinary income for those with income over $ 1 million. He also wants to increase the corporate tax rate from 21% to 28% and use the taxes to encourage domestic manufacturing by making it more expensive for American businesses to produce goods and services abroad.
Senate Minority Leader Mitch McConnell (R-Ky.) Stated categorically that his party would not support new taxes: “I don’t think there will be any enthusiasm on our side for a tax increase. He said, referring to Biden’s infrastructure program as a “Trojan horse” that will cover up a long list of Democrats-favored tax hikes.
Senate Democrats pushed the administration to make the major expansion of the child tax credit as part of the US bailout permanent. According to To post, the White House has agreed to extend the extended credit for several years in future legislation rather than on a permanent basis in order to keep costs down.
What we don’t know
Will Democrats be able to push forward the more partisan elements of the plan without the support of the GOP (which is sure to oppose parts of it, especially the tax hikes) as they l ‘did for the US bailout. This earlier bill was incorporated into a special budget reconciliation process that allowed Democrats to pass it using only a simple majority in the Senate (51 votes) instead of the usual 60 votes needed to overcome a filibuster. Senate Majority Leader Chuck Schumer (DN.Y.) would explore a path that would allow Democrats to use the reconciliation process again this exercise (rather than waiting months for fiscal 2022) to embrace some of Biden’s ambitious agendas. This would allow Schumer to avoid removing filibuster – a controversial proposal not all Democrats support – to achieve Biden’s agenda.
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41 Democratic Senators Call on Biden to Support Permanent Child Tax Credit and Earned Income Tax Credit (UKTN)