Biden initially nominated Neera Tanden for the position, but she withdrew from consideration when it became clear she lacked sufficient support in the Senate.Compared to other member states, the UK ranked eighth highest for general government gross debt as a percentage of GDP. Biden is sending his budget to Congress well beyond a deadline than is typical for a president, after a delayed transition and as the Biden administration still lacks a confirmed OMB director. Republicans want an infrastructure package to focus exclusively on so-called "hard" infrastructure, like roads, bridges and tunnels, while Democrats want the package to be much more expansive. Biden had originally pitched, but also more than Republicans had offered initially. Republicans proposed spending less than $1 trillion on infrastructure, far less than what Mr. The budget proposal comes as the White House continues to negotiate with Republicans and Democrats on the American Jobs Plan. Trump in four years, has increased by more than $3 trillion in the barely one year since the pandemic began.
The national debt, which grew by roughly 74% under former President Barack Obama in eight years and roughly 33% under Mr. Biden's proposals as too massive, are sure to balk at not only the $6 trillion price tag for 2022, but also at the ever-increasing budgets and increasing national debt the White House projects into the future. Republicans, who have already been blasting Mr. Biden has already outlined much of the spending he wants in the American Jobs Plan and American Families Plan. The ball is now in Congress' court, and members will be massaging their own ideas of what the budget should look like in the weeks and months ahead. A president's budget is a blueprint, giving a clear picture of a president's priorities. Biden's budget proposal is just that - a proposal. It also requests more funding for COVID-19 and pandemic response activities, like testing and medical research. Included in that is a $5.1 billion enhancement of the Pacific Deterrence Initiative meant to maintain the United States' edge over China, which Defense Secretary Lloyd Austin calls the department's "pacing challenge." The Pentagon budget request includes $617 million in new investments to tackle climate change. The president's budget request for the Pentagon is $715 billion, a 1.6% increase over the current budget. The budget also calls on Congress to address prescription drug prices and to expand Medicare. The president's proposal provides a $500 million increase for Homeless Assistance Grants increases funds for civil rights offices and activities across the government provides the most ever discretionary funding for the Centers for Disease Control and Prevention ($8.7 billion) and would put $936 million into a new Accelerating Environmental and Economic Justice Initiative at the Environmental Protection Agency.
On a call with reporters Friday, White House officials admitted that there will be "some short term inflation," although they expect that to settle down in the years to come. It's not clear how the American Jobs Plan and American Families Plan would affect real annual GDP growth, which the Biden administration estimates will be 2% in 10 years without those two plans. The top corporate tax rate was 35% before the Trump-era tax cuts. Biden has already said he wants to pay for his infrastructure and families plans by increasing taxes on those making more than $400,000, and by increasing the top corporate tax rate to 28%, up from its current rate of 21%. Young noted that the American Jobs Plan and the American Families Plan are "fully offset within 15 years." "We certainly believe that the president's budget improves the long term fiscal outlook because his policies are more than paid for over the long run," Office of Management and Budget Deputy Director Shalanda Young said on the conference call with reporters Friday morning. What Biden administration officials don't say outright is that Democrats currently control the White House, Senate and the House, a potentially once-in-a-generation opportunity for Democrats to implement their agenda.
The White House argument that now is the time to spend big is predicated on low interest rates and the urgent need for better roads, bridges and jobs.