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Biden Unveils $1.8 Trillion American Families Plan

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  • On Wednesday, President Biden rolled out the American Families Plan, a $1.8 trillion proposal that targets investments in education and aid for families.
  • The plan includes financing for free universal pre-school, two years of free community college, comprehensive family and medical leave, enhanced food assistance for children, and efforts to reduce the cost of childcare, among other measures.
  • The president’s proposal also includes $800 in tax cuts. The other $1 trillion will require new spending, which he plans to fund through tax reforms that target the rich.
  • The proposal, which is part of Biden’s three-pronged economic policy, has already been met with resistance from Republicans in Congress, who have largely opposed broad spending and tax hikes.

What’s In the Families Plan?

President Joe Biden on Wednesday officially unveiled a $1.8 trillion plan that aims to drastically expand access to education and investment in safety-net programs for families.

The proposal, called the American Families Plan, is part of Biden’s three-tiered Build Back Better economic initiative, which also includes the stimulus bill passed in March, as well as the $2.3 trillion infrastructure package.

If signed into law, the new plan, among other measures, would:

  • Provide $200 billion for free universal pre-school for all three- and four-year-olds.
  • Reduce the cost of child care for low and middle-income families.
  • Allocate $109 billion for two years of free community college, including for non-citizen immigrants brought to the U.S. as children, also known as DREAMers.
  • Give $1,400 in additional assistance to low-income students through Pell Grants.
  • Recruit more teachers and strengthen the education workforce, specifically in communities of color.
  • Create a comprehensive, nationwide family and medical leave program.
  • Provide more nutrition assistance for children, including expanding school meals programs and summer meals programs when school is out.
  • Extend a number of tax credits aimed at helping lower- and middle-income families that were increased under the last stimulus package, including the higher Affordable Care Act premiums tax credits and the Child Tax Credit aimed at fighting child poverty.

According to the official fact sheet detailing the plan, those tax cuts will compose $800 billion of the final price tag, but that still leaves $1 trillion in new spending.  

How Will the Plan be Financed?

As far as how the $1 trillion required for new investments will be paid for, Biden is proposing a series of tax reforms that the fact sheet says will raise about $1.5 trillion over the next ten years, including:

  • Increasing the marginal income tax rate for the top 1% of American earners from 37% to 39.6%, which would restore the top bracket to what it was before former President Donald Trump’s 2017 tax law. 
  • Raising the capital gains and dividend tax rates for those who earn more than $1 million a year.
  • Beefing up IRS enforcement.
  • Closing other tax loopholes that benefit wealthy Americans and large corporations, including a provision in the tax code that reduces capital gains on some inherited assets, like vacation homes.

What Now?

Although the details of the plan have just been made public, the highly anticipated proposal is already facing roadblocks in Congress, where Republicans have widely opposed Biden’s large spending plans and tax increases.

While Democrats could try to approve both this new plan as well as the infrastructure proposal without any Republicans, as they did with the last stimulus package, that procedure would also likely be an uphill battle.

Several centrist Democrats have called for the infrastructure bill to be bipartisan, and will likely do the same for the American Families Plan.

Biden, for his part, has said he will negotiate with Republicans to reach a compromise, but it is unclear what that would look like because, so far, their first infrastructure counterproposal is just a mere fraction of his, at $568 billion.

Any counter for the families plan would likely have a similar funding gap. Even then, Republicans have largely signaled they are much less interested in investing more money in education, child care, and paid leave, and much more interested in spending on America’s crumbling freeways and bridges.

As a result, some congressional aides have speculated to reporters that the lawmakers are months away from even taking up the American Families Plan. 

See what others are saying: (The New York Times) (The Washington Post) (CNN)

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Jan. 6 Rally Organizers Say They Met With Members of Congress and White House Officials Ahead of Insurrection

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Two sources told Rolling Stone that they participated in “dozens” of meetings with “multiple members of Congress” and top White House aides to plan the rallies that proceeded the Jan. 6 insurrection.


Rolling Stone Report

Members of Congress and White House Staffers under former President Donald Trump allegedly helped plan the Jan. 6 protests that took place outside the U.S. Capitol ahead of the insurrection, according to two sources who spoke to Rolling Stone.

According to a report the outlet published Sunday, the two people, identified only as “a rally organizer” and “a planner,” have both “begun communicating with congressional investigators.”

The two told Rolling Stone that they participated in “dozens” of planning briefings ahead of the protests and said that “multiple members of Congress were intimately involved in planning both Trump’s efforts to overturn his election loss and the Jan. 6 events that turned violent.”

“I remember Marjorie Taylor Greene specifically,” the person identified as a rally organizer said. “I remember talking to probably close to a dozen other members at one point or another or their staffs.”

The two also told Rolling Stone that a number of other Congress members were either personally involved in the conversations or had staffers join, including Representatives Paul Gosar (R-Az.), Lauren Boebert (R-Co.), Mo Brooks (R-Al.), Madison Cawthorn (R-N.C.), Andy Biggs (R-Az.), and Louie Gohmert (R-Tx.).

The outlet added that it “separately obtained documentary evidence that both sources were in contact with Gosar and Boebert on Jan. 6,” though it did not go into further detail. 

A spokesperson for Greene has denied involvement with planning the protests, but so far, no other members have responded to the report. 

Previous Allegations Against Congressmembers Named

This is not the first time allegations have surfaced concerning the involvement of some of the aforementioned congress members regarding rallies that took place ahead of the riot.

As Rolling Stone noted, Gosar, Greene, and Boebert were all listed as speakers at the “Wild Protest” at the Capitol on Jan. 6, which was arranged by “Stop the Steal” organizer Ali Alexander.

Additionally, Alexander said during a now-deleted live stream in January that he personally planned the rally with the help of Gosar, Biggs, and Brooks.

Biggs and Brooks previously denied any involvement in planning the event, though Brooks did speak at a pro-Trump protest on Jan. 6.

Gosar, for his part, has remained quiet for months but tagged Alexander in numerous tweets involving Stop the Steal events leading up to Jan. 6, including one post that appears to be taken at a rally at the Capitol hours before the insurrection.

Notably, the organizer and the planner also told Rolling Stone that Gosar “dangled the possibility of a ‘blanket pardon’ in an unrelated ongoing investigation to encourage them to plan the protests.”

Alleged White House Involvement

Beyond members of Congress, the outlet reported that the sources “also claim they interacted with members of Trump’s team, including former White House Chief of Staff Mark Meadows, who they describe as having had an opportunity to prevent the violence.”

Both reportedly described Meadows “as someone who played a major role in the conversations surrounding the protests.”

The two additionally said Katrina Pierson, who worked for the Trump campaign in both 2016 and 2020, was a key liaison between the organizers of the demonstrations and the White House.

“Katrina was like our go-to girl,” the organizer told the outlet. “She was like our primary advocate.”

According to Rolling Stone, the sources have so far only had informal talks with the House committee investigating the insurrection but are expecting to testify publicly. Both reportedly said they would share “new details about the members’ specific roles” in planning the rallies with congressional investigators.

See what others are saying: (Rolling Stone) (Business Insider) (Forbes)

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Jan. 6 Committee Prepares Criminal Charges Against Steve Bannon for Ignoring Subpoena

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The move comes after former President Trump told several of his previous aides not to cooperate with the committee’s investigation into the insurrection.


Bannon Refuses to Comply With Subpoena

The House committee investigating the Jan. 6 insurrection announced Thursday that it is seeking to hold former White House advisor Steve Bannon in criminal contempt for refusing to comply with a subpoena.

The decision marks a significant escalation in the panel’s efforts to force officials under former President Donald Trump’s administration to comply with its probe amid Trump’s growing efforts to obstruct the inquiry.

In recent weeks, the former president has launched a number of attempts to block the panel from getting key documents, testimonies, and other evidence requested by the committee that he claims are protected by executive privilege.

Notably, some of those assertions have been shut down. On Friday, President Joe Biden rejected Trump’s effort to withhold documents relating to the insurrection.

Still, Trump has also directed former officials in his administration not to comply with subpoenas or cooperate with the committee. 

That demand came after the panel issued subpoenas ordering depositions from Bannon and three other former officials: Chief of Staff Mark Meadows, Deputy Chief of Staff Dan Scavino, and Pentagon Chief of Staff Kash Patel.

After Trump issued his demand, Bannon’s lawyer announced that he would not obey the subpoena until the panel reached an agreement with Trump or a court ruled on the executive privilege matter.

Many legal experts have questioned whether Bannon, who left the White House in 2017, can claim executive privilege for something that happened when he was not working for the executive.

Panel Intensifies Compliance Efforts

The Thursday decision from the committee is significant because it will likely set up a legal battle and test how much authority the committee can and will exercise in requiring compliance.

It also sets an important precedent for those who have been subpoenaed. While Bannon is the first former official to openly defy the committee, there have been reports that others plan to do the same. 

The panel previously said Patel and Meadows were “engaging” with investigators, but on Thursday, several outlets reported that the two — who were supposed to appear before the body on Thursday and Friday respectively —  are now expected to be given an extension or continuance.

Sources told reporters that Scavino, who was also asked to testify Friday, has had his deposition postponed because service of his subpoena was delayed.

As far as what happens next for Bannon, the committee will vote to adopt the contempt report next week. Once that is complete, the matter will go before the House for a full vote.  

Assuming the Democratic-held House approves the contempt charge, it will then get referred to the U.S. Attorney for the District of Columbia to bring the matter before a grand jury.

See what others are saying: (CNN) (The Washington Post) (Bloomberg)

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Senate Votes To Extend Debt Ceiling Until December

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The move adds another deadline to Dec. 3, which is also when the federal government is set to shut down unless Congress approves new spending.


Debt Ceiling Raised Temporarily

The Senate voted on Thursday to extend the debt ceiling until December, temporarily averting a fiscal catastrophe.

The move, which followed weeks of stalemate due to Republican objections, came after Senate Minority Leader Mitch McConnell (R-Ky.) partially backed down from his blockade and offered a short-term proposal.

After much whipping of votes, 11 Republicans joined Democrats to break the legislative filibuster and move to final approval of the measure. The bill ultimately passed in a vote of 50-48 without any Republican support.

The legislation will now head to the House, where Majority Leader Steny Hoyer (D-Md.) said members would be called back from their current recess for a vote on Tuesday. 

The White House said President Joe Biden would sign the measure, but urged Congress to pass a longer extension.

“We cannot allow partisan politics to hold our economy hostage, and we can’t allow the routine process of paying our bills to turn into a confidence-shaking political showdown every two years or every two months,’’ White House Press Secretary Jen Psaki said in a statement.

Under the current bill, the nation’s borrowing limit will be increased by $480 billion, which the Treasury Department said will cover federal borrowing until around Dec. 3.

The agency had previously warned that it would run out of money by Oct. 18 if Congress failed to act. Such a move would have a chilling impact on the economy, forcing the U.S. to default on its debts and potentially plunging the country into a recession. 

Major Hurdles Remain

While the legislation extending the ceiling will certainly offer temporary relief, it sets up another perilous deadline for the first Friday in December, when government funding is also set to expire if Congress does not approve another spending bill.

Regardless of the new deadline, many of the same hurdles lawmakers faced the first time around remain. 

Democrats are still struggling to hammer out the final details of Biden’s $3.5 trillion spending agenda, which Republicans have strongly opposed.

Notably, Democratic leaders previously said they could pass the bill through budget reconciliation, which would allow them to approve the measure with 50 votes and no Republican support.

Such a move would require all 50 Senators, but intraparty disputes remain over objections brought by Joe Manchin (D-W.V.) and Kyrsten Sinema (D-Az.), who have been stalling the process for months.

Although disagreements over reconciliation are ongoing among Democrats, McConnell has insisted the party use the obscure procedural process to raise the debt limit. Democrats, however, have balked at the idea, arguing that tying the debt ceiling to reconciliation would set a dangerous precedent.

Despite Republican efforts to connect the limit to Biden’s economic agenda, raising the ceiling is not the same as adopting new spending. Rather, the limit is increased to pay off spending that has already been authorized by previous sessions of Congress and past administrations.

In fact, much of the current debt stems from policies passed by Republicans during the Trump administration, including the 2017 tax overhaul. 

As a result, while Democrats have signaled they may make concessions to Manchin and Sinema, they strongly believe that Republicans must join them to increase the debt ceiling to fund projects their party supported. 

It is currently unclear when or how the ongoing stalemate will be resolved, or how either party will overcome their fervent objections.

See what others are saying: (The New York Times) (NPR) (The Washington Post)

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