President Biden’s budget bill seeks to provide universal preschool education for 3- and 4-year-olds.
Photo: MANDEL NGAN / AFP / Getty Images
President Joe Biden proposes a budget of $ 6 trillion dollars for the next year that seeks to increase federal spending considerably and that it would raise taxes on companies and the richest Americans.
Biden presented his budget request for fiscal year 2022 this Friday, it is the first formal budget of the current federal administration.
The 2022 budget aims to invest $ 6 billion dollars in infrastructure works, free preschool and university education, increase federal programs aimed at boosting public health and childcare as well as giving aid to the poorest.
Biden is incorporating his two proposals that seek to tackle the coronavirus crisis: aid the American Family Plan and the American Jobs Plan, neither of which have yet been debated by Congress. In ten points we present the president’s first budget plan.
In summary, the 10 keys to Biden’s budget:
1. More infrastructure
The budget plan is based on the country’s growth that will be driven by programs that seek to improve infrastructure and expand the social safety net that already includes the American Employment Plan and the American Families Plan.
2. Better quality of life
Budget spending is intended for the government to guarantee more Americans to reach a better standard and quality of life, increase the middle class and boost the national industry to be more competitive globally.
Biden’s proposal on early childhood education and care, called the American Family Plan, offers universal preschool education to all 3- and 4-year-old children two years of free community college. The plan also includes the federal tax allowance per child that was expanded in the American Rescue Plan.
3. Higher taxes on the rich
The president’s plan would seek to expand the federal tax footprint, that is, increase taxes on corporations, a proposal that even Jeff Bezos, the owner of Amazon, agrees with the president since the creation of infrastructure will maintain the competitiveness of all industries in the country through better roads, broadband internet, bigger electric vehicle charging stations and more research.
The plan also includes fund childcare services that are affordable, universal preschool education and the installation of a national paid leave program. Military spending would also grow but, according to the report, it would be lower in proportion to the economy.
4. Debt would be reduced in 2030
According to a document released by the White House, the debt levels proposed by President Biden would be reduced starting in the 2030s. Employment and family plans they would be offset by increasing taxes on large corporations over 15 years.
5. Less taxes for Americans
The plan calls for the tax cut for low- and middle-income Americans, which was signed by Trump in 2017, continue until 2025 and is expected to be extended in the future. Biden has vowed not to raise taxes on people who earn less than $ 400,000 a year.
6. Speed of growth
The project would place the United States with a large debt to be able to finance the president’s plans so the deficit could reach $ 1.8 trillion in 2022 which, according to the president, would allow the economy to grow per year at a faster rate than since the 1980s.
7. The biggest debt since World War II
Not all is good news since money will be needed to grow and this must come through a millionaire loan. The new plan would place the level of debt at an amount that would exceed the annual value of the country’s economic output. It is estimated that in 2041 the country’s debt would reach its highest level in United States history even surpassing the record reached during World War II.
8. A large budget with moderate growth
The budget proposed by President Biden’s team predicts that the economy will grow just over 2% annually compared to millionaire spending. Only in 2021 is the economy expected to grow $ 5.2 percent but the level will decline over the years.
This rate of growth would be similar to what the United States has been experiencing for the past 20 yearsHowever, unemployment could fall from 6.1% to 4.1% next year and could remain below 4% during the following years.
9.A price increase
Like everything in the economy if we overspend there is a rapid increase in prices. This has been happening in different products as the economy reopened across the country after the shutdown caused by the pandemic.
The announced budget expects consumer prices to rise no more than 2.3% each year and that the Federal Reserve will only gradually raise interest rates to minimum levels.
In general the plan proposes that the government spends more and more as part of the economy every year that would allow you to earn more income in the future than at any other time.
As Jen Psaki, the White House press secretary, said Thursday that this $ 6 billion budget “will allow putting together with the American Rescue Plan and the American Family Plan in a better financial situation over time. ”.
Biden inherited $ 3 trillion that the Trump administration approved during his final year to face the COVID-19 pandemic and then add another $ 1.9 billion in financial aid expenses to distribute a third stimulus check.
Since then Biden seeks to spend more than $ 4 trillion on infrastructure, education and social security programs to benefit American familiess and pay for those programs with higher taxes to companies and the richest Americans.
10. Path to approval
The proposed 2022 budget will have to be approved by Congress, which with control of the House by Democrats and division in the Senate, the chances of it becoming law are higher if you seek the votes of all Senate Democrats so spending plans can move forward.
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