(Washington) Less than two weeks after signing the massive $ 1.9 trillion bailout plan, Joe Biden early this week could consider a proposal for nearly $ 3 trillion in investments, part of it in infrastructure to stimulate the economy and reduce carbon dioxide emissions.2.
The Democratic president has always indicated that after emergency measures, major investments will be needed to promote sustainable growth and tackle environmental problems.
Consequently, the US President’s economic advisors are preparing to recommend spending “up to $ 3 trillion,” according to the New York Times, which quoted sources familiar with the matter.
“After months of internal debate, Biden’s advisers are expected to present the president a proposal this week recommending that his economic agenda be divided into several separate pieces of legislation, rather than trying to push a massive package through Congress, according to reports. People with knowledge of the project,” he writes daily. .
White House spokeswoman Jane Psaki said in a tweet on Monday night that the Biden administration, when drafting a new plan, “will focus on jobs and how to improve the lives of Americans.”
According to her, Joe Biden is “looking at a variety of options,” and is reviewing plans with different goals and sizes. He said that he “will speak to his team in the coming days, but speculation is premature, given that POTUS (President of the United States) has no plans to provide more details this week.” She adds.
For their part, CNN and Washington Post said that the investments will be divided into two parts.
One focuses on infrastructure and the other on other national priorities, such as kindergarten for all (many public schools only accommodate children from 5 years old) or free school fees. In community universities.
Reform your tax code
Earlier, Jane Psaki said in a written statement that President Biden and his team are also considering reforming the tax code “so that it rewards work, not wealth.”
She added that “these discussions are ongoing and therefore any speculation about future economic proposals is premature and does not reflect the thinking of the White House.”
During his campaign, Joe Biden himself talked about a multi-year $ 2.3 trillion investment plan.
In Congress, Democrats and Republicans have already begun their negotiations behind the scenes.
For now, Republicans are fiercely opposed to a costly plan that would add more debt to the United States.
Last week, the two parties began exchanging word games.
“I think the Trojan horse will be called“ infrastructure. ”But in this Trojan horse will hide all the tax increases,” declared the Republican minority leader in the Senate, Mitch McConnell.
Democrats, for their part, hinted that they could choose a measure that would allow them to rely only on their simple majority in the Senate, bypassing a possible Republican blockade, as is the bailout plan that was adopted without any Republican vote.
Long-term effect
Gregory Daco, economist at Oxford Economics, said, “$ 3 trillion is a lot of money, especially as it comes after stimulus plans totaling nearly $ 6 trillion” in one year.
“But the fundamental difference is that emergency measures, including checks for families, have a one-time effect, while infrastructure investments aim to boost growth in the long term,” he explains.
Additionally, financing this new plan by raising taxes on the rich and corporations could help garner support from the margin of anti-Democrats to expand US debt and deficits.
“We open hostilities to $ 3 trillion and will go down to $ 2,000 billion,” says Gregory Daco.
For their part, the companies began their work in the lobby. For example, a coalition of more than 140 groups led by the US Chamber of Commerce and the Center for Bipartisan Policy recently urged lawmakers to pass a bill with a symbolic deadline of July 4, National Day.
But they don’t want to hear about corporate tax increases.
At the end of 2018, the Trump administration lowered corporate taxes on the contrary, arguing that it would liberalize employment margins.
Lucas Tremblay is a contributor at Vaughantoday.ca, covering a wide range of topics including local news, politics, business, technology, sports, entertainment, and lifestyle. He focuses on delivering clear, accurate reporting and useful information that helps readers stay informed about current events and issues affecting their communities. Lucas is committed to presenting relevant stories in a straightforward and accessible way, providing balanced coverage that keeps readers connected to the latest developments.