Pass The House
Although the Biden administration has passed two major bills so far, they haven’t reached the centerpiece of their economic agenda. This centerpiece is the social spending and climate bill, worth 2 trillion dollars, and it’s something that we’ve never seen before, which is a bold move considering how polarized our political climate is.
Some of the highlights of the bill are a universal pre-K program, lower childcare costs, higher tax credits in relation to the environment, and lower drug costs while raising taxes on corporations and rich Americans. There’s a lot more, but this bill has been debated for months, with discussions between the two parties and the Democrats themselves. This bill caused some internal strife in the Democratic Party between the progressive faction and the rest of the party. However, after negotiations, the bill looks to be passed solely by Democratic support as Republicans aren’t exactly on board.
Dems believe that this will have a positive effect on the long-term future of the country, boosting social mobility and fighting against climate change, but the Republicans don’t, mainly pointing at CBO statistics. The CBO found that the bill would add 367 billion dollars to the deficit over a 10-year period, and Republicans believe that it would add to inflation woes and slow the economy in the short term. However, the CBO projects revenues to increase by 207 billion dollars, but the Biden administration says that the taxes would generate 480 billion dollars in revenue, which would end up decreasing the deficit. The last hurdle would be the Senate, which is a major one as the Democrats aren’t united on the bill, and budget reconciliation will need to be used, but it’s worth it if it’s the centerpiece, right?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
