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Social spending, taxes on business – The Denver Post – Denver, Colorado

Denver, Colorado 2021-05-29 22:39:42 –

Washington-President Joe Biden is proposing $ 6 trillion next year’s budget to include a new safetynet program for the poor and the middle class.

Biden took over the record spending involved in the pandemic and won a big victory in the COVID-19 bailout earlier this year. Friday’s announcement embodies his previous plans to significantly increase annual cabinet budget spending by adding his recently announced infrastructure and social spending initiatives.

This year’s projected deficit sets a new record of $ 3.7 trillion, which will drop to $ 1.8 trillion next year, but is still nearly double the pre-pandemic level. After more than $ 5 trillion spent on the already approved COVID-19 bailout, the country’s debt will soon exceed $ 30 trillion. As a result, the government has to borrow about 50 cents for every dollar spent this year and next.

If the deficit is largely curtailed, Mr. Biden will take advantage of the tax increases proposed to businesses and high-income earners, including preschool education, large subsidies for childcare, and guaranteed paid leave. Will promote new social programs.

“The best way to grow our economy is bottom-up and middle-out, not top-down,” Biden said in a budget message. “Our prosperity happens every day, works hard, and families It is brought about by people who feed, 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.

Shalanda Young, Deputy Budget Secretary of the White House, said Biden’s plan was “as the president told the country. It will grow the economy, create jobs and be fair to the wealthiest Americans and large corporations. Do it responsibly by demanding that you pay the share. “

Biden’s budget proposes to Republicans for 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 new ammunition. Republicans also say he’s shortening his army.

“It’s insanely expensive. It will dramatically increase non-defense spending and taxes and undermine the Pentagon,” said the Republican leader of the Budget Committee, a generally practical GOP on spending bills. Voice Senator Lindsey Graham of South Carolina said: “There will be serious debate about government funding, but Weiden’s budget is not serious and will not be part of those debates. Hmm.”

Veteran Republican Senator Richard Shelby needed to pass the annual budget bill called Biden’s plan a “blueprint for higher taxes and overspending” and “weakened our national security.” I will let you do it. “

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, unpopular automatic spending cuts have occurred, and most of them have reversed over the next decade, and there has been no real effort to stop the flow of red ink. ..

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.

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. Barely because the Democrats dominate Capitol Hill, the president has the ability to carry out much of his tax and spending plans, but his hopes of giving more to domestic institutions than the Pentagon. Will definitely hit the Republican obstacle.

Some Democrats have already dismissed Biden’s entire menu of tax increases, jeopardizing his ability to cover ambitious social spending, and domestic agencies, limiting defense spending to 1.7%. His plan to increase spending by 16% is politically impossible in the 50-50 Senate.

The Senate’s highest ally, Expenditure Commission Chair Patrick Leahy, called for bipartisan talks on Thursday 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. But to get enough profit to start achieving his social spending goals, one needs to rely solely on the support of the narrow Democratic majority in Congress.

Biden’s 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. $ 437 billion in 10 years to all Americans to provide free preschool education and two years of free community colleges for all children ages 3 and 4. 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 overseas tax incentives and raising the tax rate to 28%. Unrealized capital Gains are taxed on death and are a problem for some Democrats, and the Biden project will significantly strengthen IRS enforcement, claiming that the budget will raise $ 700 billion over a decade.

Democratic Rep. Richard Neal praised Mr Biden’s new spending and tax cuts, but said he was silent about the tax hike and “considered the administration’s proposals carefully.”

Biden’s budget calls for an increase in diplomatic funding of about 10% from 2021 and the largest increase for climate change, global health and humanitarian assistance. Mr. Biden’s $ 58.5 billion demand will help former President Donald Trump regain power to international groups such as the World Health Organization.

Last year’s $ 3.1 trillion budget deficit under the Trump administration more than doubled its previous record as revenues fell and spending surged due to the pandemic of the new coronavirus.

Cecilia Rouse, chairman of the Council of Economic Advisers, told reporters Friday that economic growth this year is likely to exceed the administration’s official forecasts announced in February.

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