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President Biden is currently in office for 100 days. Technically it is 104 days. At that time, the president’s tweets became much more boring, but the federal government’s plans to intervene in the economy became much more interesting.
In a joint parliamentary speech last week, Biden called for a trillion-dollar agenda that could radically change the economy. And now, a conservative man called “Sleepy Joe” is thrilling Red Bull and seems ready to tax and spend generations without a president.
Here is a summary of some of President Biden’s biggest economic initiatives:
American rescue plan
The most important thing President Biden has done for the economy is the $ 1.9 trillion US rescue program he signed the law on March 11. Included:
- According to the new social safety net for children Columbia University Study, May reduce child poverty by more than half. This raises the federal child tax deduction to $ 3,600 per child under the age of 6 and $ 3,000 for children aged 6-18, allowing the IRS to send monthly checks to parents and refunding full credit. That’s what happens (taxes still get it). The program has only been approved for one year, but the White House wants to make it permanent.
- Lots of money to help Americans recover from a pandemic Check for $ 1,400 For Americans who earn less than $ 75,000 $ 300 boost Weekly unemployment benefits, and 15 percent Increased benefits of food stamps (SNAP). Both unemployment and food stamp provisions will be lifted in September.
- Lots of money to help Americans live $ 21.6 billion To help people pay rent $ 5 billion To help the homeless, and about $ 10 billion To help homeowners repay their mortgages.
- Over $ 50 Billion To help defeat the COVID-19 epidemic
- $ 31 billion To help Native Americans. Congressional Democrats call it “the single largest injection of dedicated resources into indigenous communities in US history.”
- $ 28.6 billion With a grant to save the restaurant.
- About $ 250 billion to help School from kindergarten to high school, Union pension fund,and Child care provider..
- $ 40 billion For higher education.
- $ 350 billion Mainly as they deem appropriate to help states and cities recover from a pandemic. However, the bill specifically states that this money cannot be used for tax cuts.
Biden initially wanted the bill to include a national minimum wage of $ 15, but with intense lobbying from industry groups, conservatives, and moderate Democrats, such a bill was passed by a simple majority. It was abolished following the Senator’s ruling that it could not be done. Because of strange and complicated Senate rules.
American Employment Plan
The American Jobs Plan, advertised as an infrastructure plan, uses the definition of “infrastructure” to mean much more than just repairing roads and bridges. We invest in fighting climate change, transforming the energy economy, hitting racial inequality, stimulating American innovation and manufacturing, and creating millions of high-paying jobs. Are discussing.
The White House announced a $ 2.3 trillion spending proposal on March 31, proclaiming, “This is the moment to rethink and rebuild the new economy.” The plan includes:
President Biden wants to pay for all these costs by raising the corporate tax rate from 21% to 28% for 15 years. By doing this, he would partially overturn one of President Trump’s signature policies (prior to Trump, the corporate tax rate was 35%). Biden also wants to impose a “global minimum tax” of 21%. The government calculates the amount a company pays for each country and taxes it to make sure it “makes a profit in tax havens.” He also wants to strengthen IRS audits in the corporate sector.
The White House wants to hand over this package in the summer, but when it’s split 50-50 in the Senate, it needs to flock cats and probably rely on Vice President Kamala Harris’s tiebreaker vote. ..
American family planning
Last week, President Biden announced an American family plan. It weighs $ 1.8 trillion and has a $ 800 billion tax credit and $ 1 trillion in spending on a range of welfare, education, and childcare programs. Here are some of the major pillars of the plan:
- $ 225 billion For paid family and medical leave. The plan provides Americans with up to $ 4,000 a week in 12 weeks if they have children or need to deal with a family illness.
- $ 225 billion For childcare. The White House says the plan will save $ 14,800 a year on average family childcare costs. It will make some of the temporary measures passed by the American Rescue Program permanent.
- $ 200 billion Two years of universal kindergarten. According to the White House, providing free preschool education for children aged 3 and 4 can save the average family $ 13,000 over the two years of school.
- $ 190 billion Free community college for 2 years. This includes $ 80 billion in additional funding for Pell Grant and $ 46 billion for the Historically Black Colleges.
The White House is proposing to pay most of these by strengthening the enforcement of the IRS and raising taxes on the wealthy. They want to raise the maximum income tax rate from 37% to 39.6% and tax capital gains at the same rate as wages.
If passing an American work plan in the 50-50 Senate is like grazing a cat, passing an American family plan is similar to grazing cats in the areas of catnip, mice, and land mines. I am. It’s hard.
But does this all cause inflation?
The federal government has already spent $ 3-4 trillion over the past year to wipe out the turmoil caused by COVID. This is about a quarter of America’s GDP. If that amount is the only GDP of a country, that country will have the fourth or fifth largest economy in the world in the past year. And it also does not include the efforts of the Federal Reserve, which is sending money to the system.
Inflationary hawks are trembling as so many dollars are sloshing around the economy and trillions of dollars are being proposed. But they have been warning about runaway inflation for decades — and that hasn’t happened yet. Can all this spending push us beyond the edge of inflation? We will all monitor consumer prices in the coming months.
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104 Days Of Bidenonomics: Planet Money: NPR
Source link 104 Days Of Bidenonomics: Planet Money: NPR