Biden’s $ 6 trillion budget: social spending, taxes on business
Washington-On Friday, President Joe Biden announced a $ 6 trillion budget for next year, built up in a new safetynet program for the poor and middle class, but his generosity is the country’s surge in debt. It depends on taxing businesses and the wealthy to prevent them from becoming completely zero.
Biden has already outlined his major infrastructure plans and won a big win earlier this year in relieving the new coronavirus infection (COVID-19). However, Friday’s rollout aggregates costs and incorporates them into the government’s existing budget framework, including social security and Medicare, providing a more complete view of the administration’s financial position.
The huge deficit forecast reflects the steadily accumulating debt of over $ 28 trillion, after the government has well exceeded $ 5 trillion in the already approved COVID-19 bailout, and the government will be steadily accumulating this year and next year. You’ll have to borrow about 50 cents of every dollar you spend on. While the government’s structural deficit remains uncontrolled, Mr. Byden takes advantage of tax increases for businesses and high-income earners to preschool preschoolers and childcare. Will promote huge new social programs such as large subsidies for, guaranteed paid vacations.
“The best way to grow our economy is bottom-up and middle-out, not top-down,” Biden said in his written budget message. “Our prosperity happens every day and lasts a lifetime. It comes from people who work hard, feed their families, pay taxes, serve the country, and volunteer in the community. “
The budget includes the administration’s eight-year infrastructure proposal of $ 2.3 trillion and a $ 1.8 trillion US family plan, and his $ 1.5 trillion in annual operating spending of the Pentagon and domestic agencies. Request details have been added.
“These together will bring about change, strengthening our economy, increasing America’s competitiveness, and sharing prosperity and economic security,” said White House Deputy Director-General Shalanda Young. She called the Biden project “a budget that puts these factors together and does exactly what the president said to the country.” It grows the economy, creates jobs, and is the wealthiest American and big business. Do it responsibly by requiring you to pay a fair share. “
Biden’s budget proposes to Republicans in response to their criticism of the new Democratic administration, which is leaning towards the “tax and spending” agenda that hits the economy and imposes huge debt burdens on young Americans. It’s certain to give him new ammunition. And he’s facing a very nasty battle with Republicans who say he’s running out of troops.
Veteran Republican Senator Richard Shelby, who needs help to pass the annual government budget bill, described Biden’s plan as “a blueprint for higher taxes, overspending, and disproportionate funding priorities.” I criticized him violently. He added that this “completely ignores over $ 28 trillion in debt, but still undermines our national security in some way.”
Biden is a Washington veteran who struggled to curb budget deficits in the 1980s and 1990s. However, since the tea party-led moment of 2011, there has been no real effort to stop the flow of red ink since the unpopular automatic spending cuts occurred.
But, as many fiscal officials are concerned, huge deficits have not yet boosted interest rates.
The extraordinary timing of budget rollouts — Friday afternoon before Memorial Day weekend — shows that the White House isn’t keen on exaggerating bad news in the red. Parliamentarians usually hold budget hearings immediately, but they have to wait for Congress to return from a week-long recess.
Under Biden’s plans, the debt of the people will soon be comparable to the size of the economy and will soon exceed record debt levels compared to GDP since World War II. This is despite the proposals for more than $ 3 trillion in tax increases over the last decade, including raising the corporate tax rate from 21% to 28% and returning the top income tax to 39.6%.
Like all presidential budgets, Biden’s plan is just a suggestion. It is up to Congress to implement it through tax and spending legislation and annual government budget bills. The president has the ability to carry out many of his tax and spending plans because the Democratic Party controls Capitol Hill, but his hope of giving more tax increases to domestic institutions than the Pentagon is an obstacle to the Republican Party. You will definitely hit.
Some Democrats have already dismissed Biden’s entire menu of tax increases, jeopardizing his ability to cover ambitious social spending, and increased spending on domestic cabinets by 16%. His plan to force and limit defense spending to a 1.7% increase is politically impossible in the 50-50 Senate.
On Thursday, Senate chief ally Patrick Leahy (Democrat-Vermont), chairman of the Expenditure Commission, called for bipartisan talks to launch an annual spending budget bill. The alternative is a long-term freeze at current spending levels, so there is an incentive to negotiate with both Republican defense landlords and liberal Democrats like Leahy.
Mr Biden’s plan came as the White House sought an agreement with the Senate Republicans on infrastructure spending. There is growing expectation that both the House of Representatives and the Senate will have to pass the plan alone, relying on the support of the Democratic Party’s limited majority.
Biden’s high-volume spending proposal includes a number of new programs to strengthen the “care economy,” including large-scale programs aimed at caring for children and the elderly. We offer a free community college for all Americans. In addition, $ 225 billion will be subsidized for child care, allowing many to pay up to 7% of their income to all children under the age of five.
Over the next decade, an additional $ 225 billion will create a national family and medical leave program, and $ 200 billion will make the recently enacted subsidy increase under the Obama Medical Care Act permanent.
According to Biden, the tax increase will be the cost of his initiative over the next 15 years, with companies paying $ 2 trillion by curbing foreign tax incentives and raising the tax rate to 28%.
The tax increase will increase federal spending to about 25% of the economy as a whole, which means that the tax increase will approach 20% of the size of the economy once implemented.
The $ 3.1 trillion budget deficit under President Donald Trump last year was more than double the previous record as the coronavirus pandemic cut revenues and surged spending.
Republican concerns about the deficit are expressed primarily when the Democratic Party is in power and Biden’s budget is giving them ammunition to attack.
Cecilia Rouse, chairman of the Council of Economic Advisers, told reporters Friday that economic growth this year is above the budget plan of 5.2%.