House Approves Biden Deal Worth Nearly $2 Trillion

The US House of Representatives approved, on Friday, US President Joe Biden’s spending package of about $2 trillion on education, health and climate change. Rebuild better.

Although Republicans are united against the legislation — which they believe will bring more inflation and slower growth — the package managed to get 220 votes in favor, twice the minimum approval, versus 213 against. Now, the vote goes to the US Senate, where the Democrats have a slim majority.

Therefore, in the assessment of Citibank, the process will be more difficult in the House of Representatives, in this way, the final draft will undergo changes before it passes President Joe Biden’s approval or not. The bank predicts “the vacation pay will be eliminated by Democratic Senator Joe Manchin, the Immigration Department will be abolished by the congressman, and the state and local tax deduction caps will be tied to income.”

Biden and other leaders in his administration have said the investment package will pay for it, in large part through tax increases on large, wealthy corporations and companies doing business abroad.

Republicans say the legislation would hurt an economy already struggling with inflation, grant tax breaks to some wealthy taxpayers, and make the government bigger and more intrusive. Some moderate Democrats share the view of the White House’s opposition.

“While we see approval most likely, the risk is that negotiations will stretch into next year and/or the Senate version will be unpleasant for House progressives and the bill will not be passed — a scenario we see as 30% likely,” he adds. City.

Among the main points of the package version approved by the Chamber is the comprehensive guarantee for the education of children aged 3 to 4 years; 7% reduction in childcare costs for families who earn up to 250% more than the average in their states; and $500 billion to combat climate change, with most resources allocated to the clean energy sector.

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