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US investment package – President Biden retreats on social and climate spending – News

  • In response to pressure from some sections of his party, US President Joe Biden has dramatically reduced his planned package to invest in social and climate protection.
  • Costs of US $ 1.75 trillion are now planned. First, Biden targeted a package twice as large and worth $ 3.5 trillion.
  • He still defends his plan. After tough talks with the party, he has now taken a stand.

Biden’s high-investment plans were thwarted by his party, the Democrats. Some opposed such high spending and in several months of negotiations, the president was forced to abandon parts of his plans.

But Biden believes his plan is more convincing, and holds the view that the plan will be financially managed: “It’s a budget responsibility.” The president says all costs will be offset and financed by higher taxes for corporations and high-income earners.

This is to ensure competitiveness

Biden goes on to say that investments are what is needed to “really transform” the country. If nothing is done, other countries threatened to overtake the United States. The Democrat warned that this was not about “left and right”, “moderate and progressive”, but about whether America was leading the world or being ahead of the world.

Instead of $ 3.5 trillion, there was now a compromise package worth $ 1.75 trillion. “Nobody got everything they wanted.” That applies to him too. But it seems like a compromise, Biden says. Intensive negotiations between Python and various party factions took several months to organize a majority for the plans. These investments are an important initiative for Biden because this package is one of his president’s major domestic political plans.

However, it was not clear at the outset whether the majority needed for the slim package would now come in both houses of Congress. White House staff expressed optimism. At the same time, Biden launched a large package of investments in the country’s infrastructure, which has not yet been decided in Congress.

555 billion for climate

As soon as he appeared in the White House after visiting Congress, Biden left for Europe, where he will attend the G20 summit in Rome and the World Climate Summit in Glasgow in the coming days. Climate protection will play a key role in the G20 meeting. Therefore, Fitzgerald and the White House have intensified their efforts in the past few days to reach an agreement on the social and climate package before the European tour – which is international – in terms of climate, but at a glance. Biden’s political power and support for his agenda domestically.

The $ 1.75 trillion package includes $ 555 billion for the fight against climate crisis, including investments in renewable energy or tax breaks for the purchase of electric cars. The package is to be funded by tax increases for corporations and high earners and the most consistent collection of relevant taxes.