Biden proposed a $ 6 trillion budget to revive the US economy.

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source: sundayvision.co.ug

The US president urged Congress to approve this initiative, which aims to "build a new economy that invests in the promise and potential of every American."

Joe Biden proposed a $ 6 trillion budget on Friday to "reinvent" the US economy and compete with China that, if approved by Congress, will steer the country toward record debt.

In a message to Congress, the President of the United States said that we must use the moment to revive and build a new American economy that invests in the promise and potential of every American.

The Covid 19 epidemic has plunged the country into its worst economic crisis since 1946, and while the world's largest economy is recovering, it is still far from epidemic.

The head of state warned that the United States could not allow itself to return to where it was before the epidemic and recession; its structural weaknesses and the old economic inequalities still exist.

In the United States, the president's annual budget is on the wish list of any wish list or a message about his priorities. The legislators ultimately decide the amount and destination of the money, and the current Congress has a very narrow Democratic majority.

Opposition Republicans are wary of giving central government prominence. Even some of Biden's supporters warn that the US economy, now ready to recover from the effects of the pandemic, is at risk of spiraling into inflation.

However, the massive plan indicates the determination of the White House to put concrete figures to Biden's campaign to rethink the relationship between the government and the private sector, in what it defines as an existential competition with China.

According to Biden's plan, the federal tap would release about $ 6 trillion in 2022, increasing gradually to $ 8.2 trillion in 2031.

All of this spending could add to the debt, representing more than 100% of Gross Domestic Product. It is expected to reach 111.8% of GDP in 2022 and 117% in 2031.

The Democrat made the fate of the $ 6 trillion clear: much of it would go to an infrastructure bill originally proposed at $ 2.3 trillion, but which has been reduced to $ 1.7 trillion in negotiations with Congress. Another $ 1.8 trillion would go to increase state funding for education and social services as part of building a better workforce in the 21st century.

Biden argued that the overarching goal is to grow America's middle class and put the United States " in competition " with its rivals.

The budget proposal is released just before the Memorial Day long weekend and with Congress in recess for a week.

Introducing it right now may curb its momentum on Capitol Hill, where many Democrats want Biden to use his control of Congress to pass transformative legislation. Still, Republicans are playing hard at trying to block most of what the President is proposing.

Spending priorities are just one area of ​​division between the two parties. For example, Republicans are virtually unanimous in opposing Biden's broad definition of infrastructure, including green energy and social programs. There is even less agreement on how to pay for these plans.

Biden wants to raise money by ending a corporate tax cut that Republicans passed under his predecessor, Donald Trump.

The President also wants to go after the tax flaws used by large and ultra-million-dollar corporations. Republicans, on the other hand, refuse to accept this approach, saying that by re-canceling the immovable money already in the budget, their modest infrastructure projects can be reimbursed. ۔

Despite Biden's mega-budget standing and the scale, there is still the possibility of his sleeve in the White House.

Generally, Biden needs at least ten Republicans to get the required majority in the Senate. Today, evenly divided between the two parties, a difficult task.

However, let the Democrats agree, which is not guaranteed. In that case, they can approve the budget through a quick process called reconciliation, which requires fewer votes.