Six trillion dollars (five trillion euros) to reinvent the US economy in 2022. This is the amount of the check that President Joe Biden intends to get from Congress to implement his plans for recovery and modernization, and if approved, the debt will rise to heights. Unprecedented in seven decades. The White House sent the proposal to Congress on Friday, in advance the day before New York times, Who is considering, as a way to finance the massive public spending, a tax reform to impose taxes on more companies and higher incomes. The budget for next year projects a deficit of 1.8 trillion dollars (1.5 trillion euros), half of what is expected this year.
The ambition of the first federal budget for Democratic Administration – or, in other words, the roadmap to Biden’s transformative economic and social agenda – is due, according to the president, to the need to forge a new economy. On Friday, he said that after the outbreak of the pandemic, “the country simply cannot return to the previous situation.” “We must seize the opportunity to reinvent and build a new American economy” that focuses on “the needs, goals, ingenuity and strength of the American people,” he said.
The proposal addresses basic investments in physical infrastructure (roads, bridges, and broadband access) and social coverage, particularly with regard to children, without forgetting to combat climate change through clean energy generation, which in turn will be a source of employment. In essence, it combines the measures included in the two big plans that make up the Biden state, the US Employment Plan ($ 2.3 trillion, € 1.9 trillion) and the American Families Plan ($ 1.8 trillion), with the maximum goal of “facilitating access to the middle class and survival.” Where it is for families. ” In Biden’s definition, the budget “reflects that the best way to develop the economy is not from the top down, but from the bottom up,” which used to attract the middle class.
Adding to the expenditures envisaged in the two above-mentioned plans is an estimated expenditure of $ 1.5 trillion (1.2 trillion euros) for the 2022 fiscal year. In other words, government spending, which owes approval by the legislature.
One of Biden’s key electoral promises was to restore the confidence and power of the great American middle class. Two more, the cancellation of student debt, which has restricted Americans for decades to pay the credits that allow them to go to college, and the health reform to expand poor public coverage are not included in the budget proposal, portal details From the inside.
“Today’s budget, which includes US employment and family plans, is making the necessary investments in both our infrastructure and our people to ensure that the post-pandemic season is robust and thriving.” Treasury Secretary, Janet Yellen, said referring to the tax reform, with an increase of up to 28% from Corporate tax (), this budget puts our country on a long-term, financially sustainable path through fair and effective tax reform. It is currently 21%, thanks to Trump’s reform in 2017) and a higher income tax exceeding $ 400,000 annually.
The two increases will help reduce the budget deficit by 2030 and lower the current deficit projections by $ 1.7 trillion (1.4 trillion euros) for 2041, according to calculations by the White House economic team.
It is a proposal, as the Treasury Department emphasized in a statement, “It will help the nation recover from the pandemic and lay the foundations for shared growth and prosperity in the future. The FY 2022 budget proposes key investments to prioritize infrastructure, clean energy, research and development, providing a solid foundation for job creation in states. United “.
Treasury details in its statement Green book, As the White House calls it, for funding proposals. To implement the so-called US employment plan, which Biden presented on March 31, it is expected that more companies will be taxed, but also incentives to set up companies on US soil, and an end to the benefits of transferred companies; Expanding the exempt minimum access to social housing, subsidies for clean energy generation, and eliminating preferential fossil fuels. In the American Families Plan, measures such as imposing a tax on higher incomes, support for workers and families – through, for example, extending the discount to children through 2025 – or administrative improvement of the tax collection system are featured.
Subscribe here on the news From EL PAÍS América and receive all the keys to the information of the current situation in the region.