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Inflation concerns hang over Biden’s social spending plan

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Joe Biden’s iconic $175 million investment in the U.S. Social Safety Net will change in the U.S. Senate as the president is under pressure to refocus the government on curbing inflation.

Biden has been grappling with the decline in public support for months, which has dropped to lows in recent weeks due to dissatisfaction with price increases, supply chain disruptions and the lingering Covid-19 pandemic.

A poll conducted by CBS News/YouGov on Sunday showed that two-thirds of Americans disagree with the president’s handling of inflation. 82% of respondents said that the goods they usually buy are “more expensive than before”.

This issue prevented Biden from pushing for two legislative victories in a few weeks – the U.S. House of Representatives has passed his flagship $1.2 trillion bipartisan infrastructure bill and a larger $1.75 trillion reconstruction. plan. However, although Biden signed the Infrastructure Act into law, social spending plans—including subsidies for early childhood education, tax credits for families with children, expanded public health care for the elderly, and approximately $550 billion Climate change plan-facing a difficult time in the Senate.

Democratic Senator Jon Test of Montana admitted on Sunday that the Senate will make “some changes” to the House of Representatives bill. “But look, we are here to deal with reasonable people,” Tester told NBC News. “I think we can propose a very, very effective bill.”

The Democrats intend to pass the bill before Christmas without Republican support. But a comprehensive spending plan may lead to weeks of party debate in the upper house of Congress, partly to attract the two most conservative Democratic senators: Joe Manchin of West Virginia and Kelsten Cinemas in Arizona.

Both lawmakers expressed concern about the size and scope of the bill, echoing the Republican argument that the plan will unnecessarily increase the federal deficit when more and more Americans worry about rising consumer costs.

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Brian Deese, director of the National Economic Council, argued on Sunday that if “rebuilding better” becomes law, it will actually reduce inflation. “Experts in all fields have studied [Build Back Better] And concluded that it will not increase inflation because it pays a price,” Diss said in an interview with Fox News on Sunday. “But what it will do is reduce costs. “

However, the independent Congressional Budget Office, which provides cost estimates for important legislation, said last week that the bill would increase the federal deficit by $367 billion over the next ten years, while the White House separately proposed strengthening internal tax enforcement. The tax bureau will reduce the deficit by US$127 billion in the same period.

The White House postponed the assessment, believing that the CBO underestimated the revenue that the tax changes would bring to the Treasury Department. The government made its own estimates, saying that “rebuilding better” and changes to the IRS will reduce the federal deficit by $112.5 billion.

“This bill will become the largest cost-cutting bill for the American family working class in this country in decades, and its cost will become a long-standing problem in the lives of the American people,” Deiss said, noting that the provisions in the bill will lead to old age. People’s prescription drug costs are reduced, and childcare subsidies are provided for low- and middle-income Americans.

Several elements of this legislation may become the crux of the Senate. House Democrats added a tax reform to the bill that would benefit wealthy homeowners, but was opposed by progressive senators. House Democratic Speaker Nancy Pelosi insisted on a new plan to provide everyone with Four weeks of paid family leave and parental leave workers ignored Manchin’s objections.

Democratic Senator Kirsten Gillibrand from New York said on Sunday that she was “optimistic” about CBS News and believed that she could “continue discussions” with Manchin on how to incorporate paid vacation into the final plan. She added that the West Virginia senator “is in a dominant position in how to pay for these proposals.”

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