Biden Proposes To Boost $6tn Spending Plan In The New Budget
The massive proposal would involve massive new social programs as well as investments in climate change mitigation.
However, it must be approved by Congress, where Republican Senator Lindsey Graham slammed it as “insanely costly.” According to the proposal, debt would reach 117 percent of GDP by 2031, exceeding levels seen during WWII.
This is despite anticipated tax increases of at least $3 trillion on companies, capital gains, and the highest income tax bracket.
Former Republican President Donald Trump also drove increased the deficit every year he was in office, with his last yearly expenditure request costing $4.8 trillion.
The Biden budget requests $1.5 trillion in operational expenses for the Pentagon and other federal agencies. It also includes two previously announced plans: a $2.3 trillion jobs plan and a $1.8 trillion family plan.
Mr. Biden, a Democrat, stated that his budget “invests directly in the American people and will strengthen our nation’s economy and improve our long-run fiscal health”.
This budget includes the following promises:
- More than $800 billion for climate change mitigation, including investments in sustainable energy.
- $200 billion will be spent to offer free pre-school spots for all three and four-year-old kids.
- $109 billion for a two-year free community college education for all Americans.
- $225 billion for a nationwide paid family and medical leave program, bringing the United States in line with comparable rich countries.
- $115 billion for roads and bridges and $160 billion for public transportation and railroads.
- $100 billion to increase broadband internet access for every American home.
The Hyde Amendment, a federal rule that specifies public money cannot be used to support abortions in US states except in situations of rape and incest, is also conspicuously absent from the budget.
Mr. Biden is the first president in decades to waive the abortion coverage rule, which has already been praised by progressives. He advocated for the amendment for years until abandoning it during last year’s presidential campaign.
The president’s approach, however, faces an uphill struggle in the Senate, where many moderate members of his own party may vote with Republicans to back the Hyde Amendment.
On the other hand, Cecelia Rouse, the White House’s top economic advisor, admitted that the economy was experiencing surges in inflation, but predicted that it would eventually settle down to an annual rate of roughly 2%.
Some economists, notably Larry Summers, who advised Presidents Barack Obama and Bill Clinton, have cautioned that such enormous government spending could cause inflation, compelling the Federal Reserve to hike interest rates, increasing the likelihood of a recession.
According to the Biden budget, an additional $14.5 trillion will be added to the US debt over the next decade.
However, the White House forecasts that the proposal would be fully paid for within 15 years as tax hikes reduce the deficit.
Critics, on the other hand, are dubious of anticipated happy endings once Mr. Biden leaves office.
Senate Minority Leader Mitch McConnell labeled the initiative a “socialist daydream” on Friday.
