Biden Administration Prepares $3 Trillion Economic Plan

Biden Administration Prepares $3 Trillion Economic Plan

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Key Takeaways

• White House crafts preliminary economic package
• Joe Biden expected to disclose details later in the week

Less than a month has elapsed since the approval of the $1.9tn Covid-19 relief bill. Yet, President Joe Biden and his administration have put together a new spending package. A sweeping $3tn of funding for infrastructure and economic needs. The new priority on the agenda is still in the making. However, it promises to advance Joe Biden’s “Build Back Better” program.

The new package is similar to the Covid-19 stimulus bill. Therefore, it will include spending on family matters such as education and paid family leave. The package will be directed towards a general improvement in the quality of life of the nation.

Some of the larger measures envision $1tn for roads, bridges, electric vehicle charging stations, and railroads, among other items. The aim of the package would be to facilitate the transition to a greener future using clean and sustainable energy.

The White House plan is still preliminary and any details around it could change. Nevertheless, the plan’s goal is certain: to boost the economy and help the country move towards an improved way of life.

Seeking Bipartisan Approval

The measures, once they are finalized and ready to be proposed, would seek bipartisan approval, much like the $1.9tn rescue plan. However, not a single Republican voted in favor of the American Rescue Plan. Thus, Democrats in Congress have expressed willingness to sidestep the Republicans by using the same procedure of reconciliation that they used to pass the relief bill. The procedure will allow the party in control of Congress to pass the big-ticket legislation with a simple 51-vote majority in the Senate. Consequently, Vice President Kamala Harris will cast the tie-breaking vote.

House Speaker Nancy Pelosi urged Congress to act quickly once the legislation lands for discussion. The aim is that the economic plan could overlap the Covid-19 relief package and help create “good-paying jobs for the future in every zip code”.

Upcoming Details on the Economic Package

The infrastructure and economic package is expected to be discussed by President Biden later this week. The President will provide more details surrounding the plan. Then he would have to sign off on it so that it could move forward.

Even though the plan is currently in its preliminary stage, it is expected that the Biden administration could split it into two separate proposals. The pair of proposals will be divided among infrastructure, education, workforce development, and climate change. They are all intended to make the economy more productive.

The first batch aims at boosting manufacture and improving transportation systems in order to reduce carbon emissions. The second one would be focused on reducing economic inequities through investments in paid leave, universal pre-kindergarten, and free community college.

Additionally, the measures in the infrastructure and economic plan will include long-term tax hikes and revenue-raising efforts. Biden’s program proposes higher corporate taxes for people earning more than $400,000 per year. Increasing corporate taxes and rates for wealthy people is expected to be used as a tool to provide more funding for the sweeping package.