span>Friday/span>28th May 2021 - 18:55 (BST)
President Biden has set out an ambitious spending plan in his first full budget since taking office in January. Speaking to Congress in Washington D.C earlier today, the president is seeking $6 trillion in U.S federal spending over the year 2022, with expectations of levels rising to $8.2 trillion by 2031.
Prioritising investment in infrastructure, education and climate change, his national rebuilding proposal would represent the biggest sustained level of spending since World War II. It would also take government spending to roughly 50% higher than those pre-pandemic.
To help fund all of the above, the 46th US President recommended a $3 trillion tax increase on corporations, capital gains and for those earning more than $400,000. It also assumes that American productivity will continue to recover at a rapid pace, with further projections of increased debt being cleared within 15 years.
While the president can propose an annual budget for the U.S. government, it’s up to Congress to approve spending bills. And while Democrats hold the majority in the U.S. House of Representatives, they only narrowly control the 50-50 divided U.S. Senate, with Democratic Vice President Kamala Harris holding the tie-breaking vote.
News of the huge spending broke in the New York Times yesterday and immediately sparked a spending frenzy on stock markets, pushing USD lower as investors poured into more risky assets.
