However, this new Democratic Reconciliation Bill is facing strong opposition from the Republican Party, along with two Democratic senators, Joe Machin and Krysten Sinema, because of the $3.5 trillion price tag. If passed, the proposed bill would cement President Biden’s “Build Back Better” vision with two free years of community college, child care assistance, extended child tax credits, and much more. It’s important to note that this bill is in addition to the $1 trillion infrastructure bill, passed with bi-partisan support, in August 2021 to provide funding for rebuilding infrastructure, broadband internet, water and sewer infrastructure, and much more.
In this article, we will take a closer look at both spending bills and how the expenditure will trickle down to local and state economies.
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The Democratic Party is trying to push the spending bill through a budgetary process called reconciliation that needs all Democratic senators to be on board to bring this process to fruition. It’s primarily focused on enhancing a wide range of social benefits for Americans. It’s also important to note that the total price tag on this bill will be incurred over a 10-year period and the proposed funding will come from a newly proposed tax plan.
We will likely see all provisions of this plan come to a negotiated agreement before President Biden signs off.
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Disclaimer: The opinions and statements expressed in this article are for informational purposes only and are not intended to provide investment advice or guidance in any way and do not represent a solicitation to buy, sell or hold any of the securities mentioned. Opinions and statements expressed reflect only the view or judgement of the author(s) at the time of publication and are subject to change without notice. Information has been derived from sources deemed to be reliable, the reliability of which is not guaranteed. Readers are encouraged to obtain official statements and other disclosure documents on their own and/or to consult with their own investment professionals and advisers prior to making any investment decisions.