Joe Biden proposed a $ 6 trillion budget on Friday to “reinvent” the US economy and compete with China. This, if approved by Congress, would put the country on the right track for record debt.
“We must seize the opportunity to reinvent and build a new American economy that invests in the promises and possibilities of every American.”The President of the United States said in a letter to Congress.
The COVID-19 pandemic has engulfed the country The worst economic crisis since 1946Although it is the largest economy in the world He began to recoverStill, far from pre-pandemic levels.
“The United States simply cannot return to what it was before the epidemic and economic recession, as structural weaknesses and disparities in the old economy remain.”The president of the United States warned.
In the United States, the annual budget that the president proposes It’s a wish list or message about your priorities more than anything else. Legislators are the ones who finally decide the amount and destination of the money, and the current Congress has it A very narrow Democratic majority.
The opposition Republicans fear giving the central government a prominent place. Even some Biden supporters warn that the US economy is now ready to recover from the effects of the epidemic. Runs The risk of falling into an inflationary spiral.
Nevertheless, the grandiose plan signals the White House’s determination to put concrete numbers into Biden’s campaign to rethink the relationship between government and the private sector, in what he defines as An existential competition with China.
According to Biden’s plan, The federal faucet will release about $ 6 trillion in 2022, with the increase gradually increasing to $ 8.2 trillion in 2031.
All of that spending could add to the debt, That now It accounts for more than 100% of the GDP. It is expected to reach 111.8% of GDP in 2022 and 117% in 2031.
The Democrat explained the destination of the $ 6 trillion: a lot of it will go to a bill Infrastructure It was originally proposed at 2.3 trillion, but that has been reduced to 1.7 trillion in negotiations with Congress. Another $ 1.8 trillion will be allocated to increasing state funding for education and social services As part of building a better workforce in the twenty-first century.
Biden said the overall goal is to do so Grow up to the American middle classAs well as the status of the United States. “To competeWith rivals.
The budget proposal is released just before the Memorial Day long weekend and with Congress in a week-long hiatus.
Presenting it now can slow you down on Capitol HillMany Democrats want Biden to use his control of Congress to pass Transformational legislationBut the Republicans are playing hard Try to block most of what the president suggests.
Spending priorities are just one area of the split between the two. For example, Republicans are effectively unanimous in opposing Biden’s broad definition of infrastructure, which Includes green energy and social programs. There is less agreement on how to pay for these plans.
Biden wants to raise the money by ending tax cuts that Republicans imposed on companies It passed under the rule of his predecessor, Donald Trump.
The president too He wants to aggressively go after the tax loopholes used by the big million dollar corporations. By contrast, Republicans refuse to accept this mechanism, saying that their more modest infrastructure spending plans can be paid for by reallocating unspent money already budgeted.
Despite the confrontation, and the sheer size of Biden’s massive budget, The White House still has a potential ace up its sleeve.
Typically, Biden needs at least ten Republicans Achieving the required majority in the SenateToday, divided equally between the two parties, a difficult task at best.
However, if the Democrats remain unanimous, which is also not guaranteed, they may be able to Pass the budget through an expedited procedure known as reconciliation, which requires fewer votes.
With information from Agence France-Presse
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