Democrats Push a Budget to Fulfill Biden’s Aggressive Economic Ambitions

The budget blueprint is the first step toward that larger legislation. It includes new spending programs and tax incentives, though it is still light on details. Among them: an extension of Medicaid coverage to bring health insurance to some low-income residents of states that have refused to join the program’s expansion and an extension of Medicare benefits to include dental, vision and hearing coverage. It is also filled with efforts to reduce greenhouse gas emissions, including the creation of a “civilian climate corps” employed by the government. The blueprint calls for four additional years of guaranteed public education and a host of supports for workers, including paid leave and subsidized child care.

In nearly all of those cases, Democratic leaders noted in a background document for reporters this week, the “duration of each program’s enactment will be determined based on scoring and committee input.”

In other words, lawmakers are saying that they want it, but they are not sure how long they can fund it.

Any final legislation will be a math game, with a sort of Tetris twist: How many programs and tax cuts can Mr. Biden’s team and Democratic leaders cram into a spending box that will be no larger, and perhaps much smaller, than $3.5 trillion?

Republicans have already begun to attack the plan, calling the spending exorbitant and warning that the tax increases Mr. Biden plans to pay for some of the programs will stifle the economic recovery.

Moderate Democrats have expressed relatively little consternation over the scope of the budget’s spending ambitions, at least publicly. Senator Joe Manchin III of West Virginia has raised concerns over some spending related to climate change, and others have said they need more details, but party leaders have not seen large-scale revolts against entire spending proposals. Progressive lawmakers and outside groups have cheered the blueprint, a key to keeping the Democratic coalition intact.

There is far less agreement on how to pay for the programs — and to what degree they should be financed. Mr. Manchin has said the entire $3.5 trillion should be offset through revenue increases or cost savings. The budget blueprint includes calls for unspecified tax increases on corporations, high earners and greenhouse gas emissions (in part by taxing imports from high-emission countries, likely including China) and for savings on government spending on prescription drugs. It also proposes to “pay for” some spending by projections of increased economic growth — like the additional output generated by women who are able to work more hours if their child care is more affordable.

Article source: https://www.nytimes.com/2021/07/15/business/democrats-budget-biden-economic-agenda.html