Biden Administration Looking at $3 Trillion in New Government Spending
Fresh off passing a $1.9 trillion “American Rescue Plan,” the Biden administration has decided to go even bigger with its next proposals: a $3 trillion effort that covers everything from roads to global warming to pre-kindergarten:
The first proposal would center on roads, bridges, and other infrastructure projects and include many of the climate-change initiatives Mr. Biden outlined in the “Build Back Better” plan he released during the 2020 campaign.
That package would be followed by measures focusing on education and other priorities, including extending the newly expanded child tax credit scheduled to expire at the end of the year and providing for universal prekindergarten and tuition-free community college, the people said.
To pay for at least some of this massive wave of new spending, the administration is proposing to raise taxes:
Biden is aiming to raise the top individual income tax rate from 37 percent to 39.6 percent, and that he may propose lowering the threshold for that top rate to $400,000. Currently, it applies to individuals who earn more than $500,000 annually and couples who earn at least $600,000. Biden’s team has been kicking around ideas like raising the corporate income tax rate from 21 percent to 28 percent and imposing a higher capital gains tax on individuals who make over $1 million annually.
But even that level of taxation (soaking “the rich”) won’t cover the entire bill. For that, there will need to be more debt…and the nation’s debt pile is already larger than the real economy.