And Joe Biden, as promised during the election campaign, knocked on the door of the US Congress asking for funds to get the US economy back on track in 2022. And what he asked for is a “monstrous” figure of six trillion dollars ( five trillion euros). Biden has repeatedly repeated that in order to restart the economy, it is not necessary to act from the top down, but from the bottom up, protecting the vast American middle class.
The funds will be used to implement the country’s recovery and modernization plans. If approved, the grant will push US debt to unprecedented levels in seventy years.
The proposal also includes tax reform to tax companies and high incomes that will partly serve to finance public spending.
A deficit of around 1.8 trillion dollars is forecast for next year.
After the pandemic, the President is convinced that “The country cannot simply afford to return to the previous situation. We need to seize the moment to reinvent and build a new American economy centered on the needs, goals, ingenuity and strength of the American people. “
The gigantic project includes primary investments in physical infrastructure starting with roads, bridges and broadband access. And then social coverage, especially for the younger generations, without forgetting the fight against climate change with the push for green energies.
Including in aid the American Employment Plan ($ 2.3 trillion, € 1.9 trillion) and the American Families Plan ($ 1.8 trillion), both created with the aim of keeping the class standing media, wiped out by the pandemic.
Restoring confidence and hope to the great American middle class was one of the main promises of Biden’s campaign. Two other critical issues are not included in the budget proposal: the cancellation of student debt, which has forced many Americans to pay off college loans for decades and health care reform to expand weak public coverage.
“Today’s budget, which includes American Family and Employment plans, makes the necessary investments in both infrastructure and our staff to ensure that the post-pandemic chapter is strong and prosperous. This budget places our country on a long-term fiscally sustainable path through fair and efficient tax reform, “said Treasury Secretary Janet Yellen.
The tax reform, in fact, provides for a 28% increase in corporate taxes (currently 21%, thanks to the Trump reform of 2017) and a higher income tax of over $ 400,000 per year.
Both increases would help reduce the budget deficit by 2030 and cut current deficit projections for 2041 by $ 1.7 trillion, according to the White House economic team.
The proposal, the Treasury underlines in a statement, “will help the nation recover from the pandemic and lay the foundations for shared growth and prosperity for the future. The budget for fiscal year 2022 proposes essential investments to prioritize infrastructure, clean energy and research and development, providing a driver to create jobs “.
The Treasury has confirmed that, in order to implement the so-called American Employment Plan, it is expected to tax companies more, but also to incentivize the creation of new ones but in the US territory. The will is to cut the benefits to delocalized companies. And finally, we want to expand the minimum exemption to access social housing and subsidies to generate clean energy, eliminating preferential fossil fuels.
Nell’American Families Plan instead, measures such as the tax on higher incomes stand out, support for workers and families through, for example, the extension of the deduction for children until 2025, or the administrative improvement of the tax collection system.
And America, quickly, is starting up again.