Cinema: I told the White House what I wanted for a spending package

The Build Back Better Act text, released in late September, unveiled for the first time President Joe Biden’s allies plan to spend a whopping $ 3.5 trillion.

Critics are already seizing one of the most controversial steps. To add $ 79 billion to the Internal Revenue Service over the next decade to expand audits and strengthen enforcement.

There are also many welfare, social and climate provisions contained in the 2,465-page bill that led to opposition from moderate Democrats and Republicans.

Democrats are aware that packages will not be delivered unless they fall below $ 3.5 trillion. The party is now facing a war between factions over what to include and what to exclude.

2 years free of charge at community college

The law provides all students with a two-year free community college. It is expected to cost $ 108 billion.

The bill also adds $ 80 billion to Pell Grant for families with total revenues of up to $ 50,000, and the Democratic Party has not kept pace with rising college costs.

Climate change

The plan includes $ 3 billion for “tree equity,” $ 12 billion for electric vehicles, another $ 1 billion to turn government facilities into “high-performance green buildings,” and millions more for gender identity and bias training. Includes dollars.

The bill will also spend billions of dollars tackling climate change, including the “climate change corps” proposed by President Biden. You’ll get $ 7.5 billion for public land conservation work.

Government training

Race- and gender-based issues, while spending less, can cause hackles between Republicans and moderate Democrats.

The bill includes $ 25 billion for nonprofits to provide “non-discrimination and prejudice training” in health care.

Biden spoke to Republicans and Democrats during a visit to a parliamentary baseball game Wednesday night

Extended child tax credit

The Democratic Party wants to increase the 2021 child tax credit with a $ 1.9 trillion COVID-19 bailout plan, which is now extended to 2025.

With this expansion, families will receive $ 3,600 per child under the age of 6 and $ 3,000 per child aged 6-18. Most families receive a monthly payment of $ 250 or $ 300 per child.

Fully extended child tax credits are available to individuals up to $ 75,000 or couples up to $ 150,000.

Tax cuts for workers without children

The White House says approximately 17 million low-wage workers will benefit from an increase in earned income tax credits from $ 543 to $ 1,502.

Paid family medical leave

In the United States, there is a comprehensive paid vacation that covers 12 weeks of paid family vacation and medical vacation. The law replaces at least two-thirds of income, up to $ 4,000 per month, and minimum wage workers receive 80% of their income.

Child care and universal pre-kindergarten

All family members applying shall provide childcare support to children between the ages of 0 and 5. The plan will allocate a total of approximately $ 450 billion to reduce childcare costs and provide a two-year universal pre-kindergarten for three and four years. According to the Elderly, Home Education and Labor Relations Commission.

The Panel estimated that this proposal would keep childcare costs below 7 percent of most family incomes.

Expansion of Medicare

This heavily debated provision will extend Medicare to include the scope of dental, auditory and visual services.

Prescription drug price cuts

Another important part of the bill is aimed at lowering the price of prescription drugs.

On average, Americans pay two to three times more prescription drugs than people in other countries, according to the White House.

The administration will reduce drug costs by letting Medicare negotiate prices and remove the influence of pharmaceutical companies.

How the Biden administration plans to pay for it

The Democratic Party has included a tax system to pay huge invoices, primarily for the rich.

Corporate tax rates will rise from 21% to 26%, and the highest income tax rate for Americans over $ 400,000 will rise from 37% to 39.6%. The maximum capital gains rate is also from 20% to 25%.

Biden has promised not to raise taxes on people with incomes less than $ 400,000, but Republicans argue that it simply won’t happen.

Democrats are also looking to spend $ 79 billion on strengthening IRS enforcement and cracking down on tax avoidance.

This includes plans for banks to report transactions in excess of $ 600 to the IRS.

The crackdown on unreported income is expected to generate $ 436 billion over the next decade, according to the Department of Tax Analysis. The money will be used to partially fund Biden’s $ 3.5 trillion budget adjustment plan.

The Joint Committee on Taxation is expected to generate more than $ 2 trillion in 10-year revenues from tax reforms led by the Democratic Party, about $ 1 trillion from high-income Americans, and about $ 1 trillion from corporate and international tax reforms. A $ 1 trillion tax increase is expected.

How much does it actually cost?

The White House suggests that huge spending plans will cost “zero dollars.”

However, according to an analysis by the Responsible Federal Budget Committee (CRFB), the agenda proposal requires the United States to borrow $ 1 trillion directly and predicts that nearly $ 3 trillion will be added to government bonds over the next decade. It has been.

According to CRFB, the former measure, which passed the Senate in August, only offset its own costs by about $ 200 billion. It leaves $ 350 billion to be paid.

Cinema: I told the White House what I wanted for a spending package

Source link Cinema: I told the White House what I wanted for a spending package

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