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Democrats scramble for ideas to finance $2T spending bill

Jon Lieber, head of Eurasia Group's coverage of political and policy developments in Washington, shares insights on US politics:

How are Democrats going to finance their $2 trillion spending bill?

Well, I don't know. And the Democrats don't know either. The original idea was to undo a lot of the Trump tax cuts from 2017. This is a very unpopular tax bill that every Democrat voted against, but moderate Senator Kyrsten Sinema told the White House earlier this month that she's against any and all tax rate increases. This takes the top individual income tax rate going up off the table. And it takes the top corporate rate going up off the table. And it probably takes capital gains rates going up off the table. So, now the Democrats are scrambling to backfill that revenue that they can no longer raise through rate increases with other ideas. One of those ideas is a tax on the unrealized gains of billionaires.

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From $3.5 trillion to $2 trillion: Cuts to US spending bill mean less money for families

Jon Lieber, head of Eurasia Group's coverage of political and policy developments in Washington, shares insights on US politics:

What does it actually mean to cut $1 trillion from the Democrats' $3.5 trillion social spending bill?

President Biden has proposed one of the most ambitious expansions of federal spending in recent memory. If he gets everything he wants, it would probably be the largest expansion of government since the Great Society, but he's not going to get everything he wants. Democrats have basically said they cannot do all $3.5 trillion in spending. They're probably going to end up around $2 trillion. So what gets cut? Well, we don't know yet. There's kind of two ways to go about this. They could either cut the number of programs that have been proposed, doing fewer things with more money on a permanent basis, or they could try to do more things, each program getting less money and potentially doing them on a temporary basis. So, a future Congress would have to extend it. What does this mean for you? Well, a lot of the money in here is designed to go directly to families, either in the form of cash payments, through the tax code, the Child Tax Credit and the Earned Income Tax Credit, or subsidies for things like child care, early childhood education, and community college. And if you cut these things back, it means less money is going to go out the door to the American people. It also means less tax increases to finance it. So the implications of what's being proposed could actually end up being a big deal for a lot of Americans who would qualify for benefits under these new programs.

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Evaluating the Biden administration

Ian Bremmer's Quick Take:

Hi everybody, Ian Bremmer here and a happy week to everybody. A little Quick Take, thought I would talk a little bit since we're closing in on the first year of the Biden administration. How do I assess it? And as you all know, I don't pull punches on this stuff. I say where I think they're doing a good job, where I think they're doing a bad job.

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Moderate Democrats will determine the infrastructure bill's fate

Jon Lieber, head of Eurasia Group's coverage of political and policy developments in Washington, shares insights on US politics:

What happened with the infrastructure bill in the House this week?

The infrastructure bill, $550 billion in new spending on infrastructure, roughly doubling the amount of money that the US spends on roads, bridges, tunnels, ports, airports, water infrastructure over a five-year period was scheduled for a vote on Monday of this week. That was later delayed so that Speaker Nancy Pelosi could negotiate between progressives in her caucus and moderates, the moderates who wanted to get the bill done quickly. It was bipartisan.

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Senate's bipartisan $1T infrastructure bill could double US spending

Get insights on the latest news in US politics from Jon Lieber, head of Eurasia Group's coverage of political and policy developments in Washington:

The Senate passed a $1 trillion infrastructure bill this week. What do we know about that?

Infrastructure week is finally here, after many years of fits and starts on pressing a bipartisan infrastructure bill. The Senate moved one out of the chamber this week, as well as making progress on President Biden's $3.5 trillion follow-up spending plan. What's in the infrastructure bill? While it's a whole bunch of money for roads, bridges, tunnels, water projects, broadband deployment, airports, ports, all types of physical infrastructure, and it was done on a bipartisan basis.

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