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Joe Biden's Economic Plan: What does it consist of?
This Thursday, October 28, the President of the United StatesUnited States Joe Biden, presented a reduced version of what will be his huge economic plan that would allow him to expand the social security network.
This has been presented just hours before making his second trip abroad as President of the United States.
This proposal is valued at 1.75 trillion dollars and focuses mainly on treating the climate crisis, reducing costs for the middle class and tax reforms, expanding access to health and care for families.
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"After several months of constant negotiations, I think we have a historical, I know that we have a historical economic framework. It is a framework that will create millions of jobs, which will allow the economy to grow, invest in our nation and our citizens, "explained Joe Biden.
"We will be able to turn the climate crisis into an opportunity for all and this will not only allow us to compete to win the economic competition for the 21st century against China and the rest of the important countries in the world" added the President of the United States.
He has been in defense of his infrastructure and spending bills, this is how the president has said that this will help the US to regain its position as a world leader and to be among the first of the 21st century.
"It is about competitiveness versus complacency", as he mentioned during his remarks at the White House. Joe Biden ended his remarks by inviting Congress to pass both the bipartisan infrastructure bill and its economic agenda.
"Given the slightest opportunity, the people of the United States have never let their country down, so let's do this for everyone," Biden said before leaving for his trip abroad, who will be in Europe.
Despite presenting his economic plan with great force, his program continues to generate doubts and an uncertain path awaits him in Congress. In the case of the progressive Democrats in the House of Representatives, they remain skeptical of their plan, so they hope to see the full legislative program.
This is how Democrats threaten not to vote in favor of this agenda until the legislative text is published in its entirety. So far they have only offered a small preview of it.
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This new plan makes important announcements, but does not include some key points that Biden had proposed at the beginning, such as paid family leave and medical leave, as well as free community colleges, dental coverage, Medicaid ophthalmology and the provisions on the price of prescription drugs.
Joe Biden's economic plan
The economic plan presented for the United States by President Joe Biden includes the following points:
Fight the climate crisis
Most of this agenda is based on the climate and the climate crisis that we are experiencing right now, so it will include the largest legislative investment in the fight against climate change in the United States, this has been made known from the White House.
Some officials of the White House affirm that this project presented by Joe Biden will put the United States on the path of the objectives of the Paris Agreement, by which it will achieve a reduction of 50% or 52% of the emissions of greenhouse gases below the levels reached in 2005 by the end of the decade.
$320 billion will be used for clean energy tax credits, including the 10-year extended clean energy tax credits at the utility and residential scale. Transmission and storage, clean energy manufacturing, and clean passenger and commercial vehicles will also be covered.
Some 105,000 million dollars will be used to combat extreme weather events, as well as pollution in communities and the creation of a Civil Climate Corps to conserve public lands and strengthen resistance to technology.
$110 billion will also be used for investments and incentives for technology, clean energy supply chains and manufacturing.
And finally, 20,000 million dollars that would be used to encourage the purchase of new generation technologies by the Government, while non-polluting construction materials would be included.
Measures for the care of children and infancy
One of the main objectives of this economic plan is to introduce free and universal preschool for children between 3 and 4 years of age, this would mean the largest expansion of public education in 100 years, as confirmed by the president from the House White.
In the same way, a six-year financing would be included. It also seeks to expand access to high-quality and affordable pediatric health care to some 20 million children each year, with funding for six years.
Undertake a permanent improvement in Medicaid coverage for home care services for the disabled and the elderly, which would be generating a transformative investment in access to home care in 40 years.
It seeks to expand the enhanced tax credit to help all children through the American Rescue Plan and provide about 35 million homes with amounts ranging from $300 to $3,600 a month as child tax cuts.
Lower costs for the middle class
The United States is considering investing $150 billion to expand access to affordable housing. This would be a plan that allows the construction, rehabilitation and improvement of more than one million affordable homes.
It also seeks to expand the Earned Income Tax credit for at least 17 million low-wage workers, as well as to carry out an increase in the maximum Pell grant by $550 for more than 5 million students enrolled in both private universities without profit-making and public.
Another goal is to be able to expand access to dreamers and expand free school meals to 8.7 million children during the school year. They also want to get a benefit of $65 per child per month, this would be for at least 29 million children, with which they can buy food during the summer.
Improve health care
The number one health care goal is to lower premiums for at least 9 million Americans who purchase insurance through the Affordable Care Act. As well as closing the coverage gap of Medicáis and being able to offer greater health coverage through the disc credits for premiums of the Affordable Health Care Act.
This would be for certain Americans who do not have insurance. Similarly, it seeks to expand Medicare coverage to include hearing services.
Regarding the tax reforms in this project, it is stated that a minimum tax of 15% will be imposed on the profits of companies that declare more than 1,000 million dollars in profits to shareholders.
Likewise, a 1% surcharge will be handled in the repurchases of shares of the companies. The economic management project will take a minimum tax of 15%, country by country, on the foreign profits of US companies.
A new surcharge will also be applied on the taxes of billionaire and billionaire income, where a rate of 5% will be handled above the income of 10,000,000 million dollars and an additional surcharge of 3% for this income above 25,000.000 million dollars.
From the White House they emphasize that no one who earns $400,000 or a lesser amount would have their taxes increased. Trained tax agents would also be hired to go after the wealthiest evaders, thus modernizing the previously somewhat outdated tax technology and investing in taxpayer service.
After several months of negotiations and concessions that allowed Joe Biden's initial proposal estimated at 3.5 billion dollars to be reduced by half, the White House has communicated this Thursday early in the morning its confidence in this new framework, which he hopes they will have enough support to pass it in the House of Representatives as well as the Senate.
"This would mean one of the most transformative investments in childhood and health in generations. There has been one of the greatest efforts to combat climate change in history, realize the largest expansion of affordable health care in a decade and a historic tax cut for tens of millions of middle class families. " This has been expressed by a senior government official.
"It is all paid for by rewarding it with work, not wealth, and by ensuring that the wealthiest and corporations pay their fair share and are not cheating all good and honest Americans on their tax bills." The government official from the White House has added.