President Joe Biden could increase federal spending by 25 percent, is hiking corporate taxes and gas prices are at their highest in seven years ahead of Memorial Day.
So when he stopped off in Cleveland to push his infrastructure bill and made an impromptu stop at an ice cream stand, a reporter decided to ask him what flavor he got.
‘Chocolate with chocolate chip,’ he answered after grinning for selfies at the Honey Hut Ice Cream store.
He also questioned why Republican senators were blocking the riot commission, but wasn’t questioned on the latest probe into the origins of COVID or the $6trillion budget he is set to release on Friday.
Biden made the stop after his speech at Cuyahoga Community College where he said the US had ‘turned the tide’ on the pandemic through vaccine distribution and economic recovery programs.
The country has ‘turned the tide on a once in a century pandemic,’ Biden said in remarks at in Cleveland.
He was back in town after having to cancel a planned campaign rally last March as the pandemic raged and GOP Gov. Mike DeWine closed large events, a move Biden said was the ‘right thing.’
President Joe Biden eats an ice cream at Honey Hut Ice Cream in Cleveland, Ohio, on May 27, 2021 after touting his economic plans. He told reporters that he ordered ‘chocolate, chocolate chip’
Reporters and members of the Secret Service surround Biden as he poses for pictures with his ice cream and a boy
President Joe Biden said Thursday the country has ‘turned the tide on a once in a century pandemic’
Biden walks up to the counter to order his scoop during his stop in Cleveland on Thursday
Biden reinforced the message on Twitter, writing: ‘We’ve turned the tide on a once-in-a-generation economic crisis. And now we’re faced with a question: what kind of economy are we going to build for tomorrow?’
He also issued a defense of his tax hike proposals, which will be put out in detail along with their economic impacts in his budget proposal Friday, but which have failed to win over any Republican support in the Senate.
Senate Republicans put out their latest offer of nearly $1 trillion in infrastructure spending, but won’t accept any of Biden’s proposed tax hikes. Instead, they want to take funds from previously enacted coronavirus and economic relief.
He referenced the Trump tax cuts of 2017, which Senate Republicans are rallying to preserve, and appeared to reference ongoing infrastructure negotiations with Republicans.
‘By the way, we had no problem passing a $2 trillion tax plan that went to the top 1 per cent that wasn’t paid for at all,’ Biden said.
‘Well, we’re going to take back some of that 1 per cent money and make them pay for it,’ he vowed.
He also touted his plan to raise the corporate tax rate to 28 per cent, a proposal he has already offered to come down on.
President Joe Biden (C) speaks during a tour of the Cuyahoga Community College Manufacturing Technology Center, on May 27, 2021, in Cleveland, Ohio
Biden looks at 3D printed objects during a tour of the Cuyahoga Community College Manufacturing Technology Center, where he touted his tax hike plans
‘That generates $90 billion additional revenue into the treasury for a year. That could put hundreds of thousands of people to work,’ he said.
He also touted a hike in the top individual income tax rate – ‘allowing every student in America to go to community college for free,’ he said.
‘I don’t begrudge them the money they made. Just start paying your fair share. Just a little bit,’ he said.
‘You want to give the wealthiest people in America another tax cut?’ he asked.
‘I don’t begrudge them the money they made. Just start paying your fair share. Just a little bit,’ he said.
He linked his economic plans to his COVID plan.
‘You’ve got to fix the pandemic before you can fix the economy,’ he said.
He once again pitched a $15 an hour federal minimum wage.
‘No one should work 40 hours a week and live in poverty,’ he said.
Biden spoke about the state of the nation last summer.
‘Ten months ago, we were in trouble. When I was sworn in, there were 10 million fewer jobs, a lot here in Ohio.
Biden also took on his ‘Republican friends’ in Congress who voted against his American Rescue Plan – but have not been shy about touting its benefits for small businesses in their districts.
‘I’m not going to embarrass any one of them, but I have here a list of how back in their districts they’re bragging about the rescue plan,’ he said, earning laughs from a crowd.
‘I mean, some people have no shame,’ he said with a guffaw. ‘But I’m happy. I’m happy they know that it benefitted their constituents.’
‘That’s okay with me. But if you’re going to try and take credit for what you’ve done, don’t get in the way of what we still need to do,’ he continued. ‘The bottom line is this: the Biden economic plan is working.’
His reluctance to share the information didn’t keep him from holding up the card, which a New York Times photographer captured in detail. It listed Mississippi Sen. Roger Wicker, House Minority Leader Kevin McCarthy, and new House GOP Conference Chair Elise Stefanik, among others.
A pool reporter noted the president also purchased 50 orders for staff.
‘No one should work 40 hours a week and live in poverty,’ Biden said
Major inflation fears as Biden prepares to announce a $6TRILLION budget tomorrow that will boost federal spending by 25% – the highest level since WWll
President Joe Biden is set to unveil a massive spending proposal that includes $6 trillion in government funding for the next fiscal year – an amount that would bring federal spending up to levels not seen since World War II and send inflation even higher.
The budget would have the nation continue running deficits of more than $1 trillion, a level it already topped with the onset of the pandemic – with estimated annual deficits of $1.3 trillion amid enacted and proposed federal programs.
It shows the Biden administration’s desire to keep spending despite warnings from economists that it will keep driving up prices across America.
Taxes are also set to increase by $3trillion over the next decade in line with Biden’s proposed hikes in corporate rates and plans targeting Americans making more than $400,000-a-year.
The plan, which will be released in full on Friday, would seek major changes to the economy and welfare systems that have already been reflected in Biden’s $2.3trillion infrastructure proposal, $1.8trillion education and $1.5trillion in spending.
The proposal represents a 25 per cent increase over what former President Donald Trump proposed in his final budget – in a year that would be upended by the coronavirus.
The spending levels would continue on an upward trajectory, hitting $8.2 trillion at the end of a decade, according to detailed top-line numbers leaked to the New York Times.
President Joe Biden’s budget will propose $6 trillion in spending for the next fiscal year
Asked if she could confirm reporting on the budget, White House Press Secretary Jen Psaki told reporters traveling to Michigan with Biden to ‘stay tuned.’ She pointed to prior spending laws enacted before and after he took office.
‘The president inherited $3 trillion of spending that had already been done to help get the pandemic under control. What the budget will reflect is that he is going to continue to deliver on his priorities of dong more work to get the pandemic under control, putting people back to work, and those proposals – the American Jobs Plan, the American Rescue Plan, the American Families Plan – will put us on better financial footing over time,’ Psaki said.
Larry Summers, the former director of the National Economic Council for President Obama and a Clinton advisor issued a stark warning for Biden on Wednesday night and urged him to control his spending.
He told a CoinDesk conference: ‘We’re taking very substantial risks on the inflation side.
‘I think policy is rather overdoing it. The sense of serenity and complacency being projected by the economic policymakers, that this is all something that can easily be managed, is misplaced,’ he added.
Prices on everything from food to used cars and lumber have risen sharply since Biden took office and are set to increase.
The budget is Biden’s first chance to put his mark across-the government. The blueprint reflects some of the proposals he has already made – including a major infrastructure program that he first proposed at $2.3 trillion but now wants to trim to $1.7 trillion in an effort to secure GOP support in the Senate.
The big spending boost and ongoing deficits are certain to draw Republican opposition, although the deficit also rose each year Donald Trump was in office and spiked during the pandemic.
It comes among worries among investors about inflation as the government opens up spending to counter economic impacts of the pandemic.
Taxes are expected to rise by $3 trillion over the decade – although getting the hikes through Congress is another matter. Biden is struggling to get a group of Republican negotiators to consider any taxes to pay for infrastructure in negotiations. They are drawing a line against any changes to the 2017 tax cuts.
Fed vice chair Richard Clarida helped sooth some of those concerns Wednesday when he expressed optimism the central bank could engineer a ‘soft landing’ if prices continue to rise. Concerns about inflation have sparked market swings in recent weeks.
The budget is merely a blueprint that each house of Congress will vote on, and will shape the spending bills that the House and Senate try to enact to make the programs reality.
According to the Times look at the budget, Biden’s proposed tax hikes on upper income earners would start bringing the deficit numbers down in the 2030s, at which point they would become fully effective.
The administration is forecasting a deficit of $1.8 trillion in 2022 amid an economic rebound and a series of coronavirus relief proposals that were enacted.
Trump’s proposed budget for 2021 was $4.8 trillion.
The budget also includes language on what would be a major policy change: lowering the Medicare eligibility age to 60, along with a ‘public option’ for Obamacare. Both are complex issues that would require major legislative action. Proposed Medicare changes would also include dental, hearing, and vision coverage, according to the Times.
Annual deficits have been on the rise since 2015, with a big spike amid the pandemic
The public debt is on track to remain above World War II levels for years
Former President Trump’s proposed budget for 2021 was $4.8 trillion, after years of consecutive increases in the deficit
Republicans release $928billion counteroffer to Biden’s $1.7trillion infrastructure plan that rejects corporate tax hikes, uses unspent COVID relief and invests in roads and bridges
Republican senators outlined a $928 billion infrastructure proposal Thursday, a counteroffer to President Joe Biden’s more sweeping plan as the two sides struggle to negotiate a bipartisan compromise and remain far apart on how to pay for the massive spending.
The Republican offer would increase spending by $91 billion on roads and bridges, $48 billion on water resources and $25 billion on airports, according to a one-page summary released by the GOP negotiators.
It also would provide for one-time increases in broadband investments, at $65 billion, and $22 billion on rail.
Republicans have rejected Biden’s proposed corporate tax increase to pay for new investments, and instead want to shift unspent COVID-19 relief dollars to help cover the costs.
‘It’s a serious effort to try to reach a bipartisan agreement,’ said Sen. Shelley Moore Capito of West Virginia, the lead GOP negotiator.
The Republican senators said their offer delivers on ‘core infrastructure investments’ that Biden has focused on as areas of potential bipartisan agreement.
Last week the Biden administration lowered Biden’s $2.3 trillion opening bid to $1.7 trillion. But the GOP insist this is still not enough.
In a memo to the White House, Republicans including Senators Capito, Barrasso, Blunt, Crapo, Toomey and Wicker said: ‘We recognize that your most recent offer leaves us far apart and, coupled with your Memorial Day deadline, leaves little time to close the gap
The Republican offer would increase spending by $91 billion on roads and bridges, $48 billion on water resources and $25 billion on airports, according to a one-page summary released by the GOP negotiators. It also would provide for one-time increases in broadband investments, at $65 billion, and $22 billion on rail
In earlier negotiations. Biden reduced his $2.3 trillion opening bid to $1.7 trillion. Capito is pictured meeting with Biden in the Oval Office on May 13
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