When $1 Trillion is Just Not Enough!

Hey Influence Traders, 

Andrew Giovinazzi and I are hosting our big Capitol Gains kickoff event this Thursday.

We are going to talk K-Street to Wall Street and put on some trades like the hedge funds do.

I look forward to you joining us.

The $1 trillion infrastructure deal is freshly signed — and even before that Senate Dems led by Bernie Sanders were already proposing an additional $3.5 trillion spending bill.

The bill includes spending on paid medical leave, tuition-free community college, and climate fighting initiatives.

Sanders plans to pass the bill through the budget reconciliation process which only takes 51 votes.

The Process

The budget resolution establishes 12 Senate committees that will draft the $3.5 trillion spending plan. 

The Democrats are targeting Sept. 14 for the committees to submit their reconciliation legislation.

Democrats want to pass the budget resolution through a process known as reconciliation. That will require all 50 Democrats (and Kamala Harris) to stick together.

They will get no Republican support.

Bill Highlights

The budget resolution contains more than $200 billion for energy and environmental policy items, including funding for a clean electricity payment program.

Democrats claim that it would also unlock funding for universal pre-K and tuition-free community college while making investments in public housing and expanding health care. 

Environment

      • Proposes $67 billion for the Senate Environment and Public Works Committee and $198 billion for the Senate Energy and Natural Resources Committee to study climate and energy initiatives.
      • Funds a clean electricity payment program, domestic clean energy manufacturing financing, climate research and hard rock mining.  
      • Funds clean vehicle technology, Environmental Protection Agency climate and research programs, and environmental justice investments such as clean water access and port health. 
      • Establishes a Civilian Climate Corps.
      • Establishes a carbon polluter import fee.

Health Care Provisions

      • Lowers premiums and drug prices.
      • Adds dental, hearing and vision benefits to Medicare.
      • Funds home elder care.
      • Creates enhanced paid family and medical leave benefits.

Will not lower Medicare eligibility age to 60.  

Education Initiatives 

      • Establishes universal education for ages 3 – 4.
      • Makes community college free for up to two years.
      • Increases Pell Grants.
      • Invests in historically Black colleges and universities, minority-serving institutions, Hispanic-serving institutions, and tribal colleges and universities.

Immigration Policies

      • Funds a path for the “lawful permanent status for qualified immigrants.”
      • Funds “green cards to millions of immigrant workers and families.”

Infrastructure Spending

The Democrats are seeking an “historic level” of funding for public housing, green and sustainable housing, housing production and affordability, and workforce development and job training programs. 

      • Makes the “largest ever one-time investment in Native American infrastructure projects.”
      • Fixes “aging Veterans Administration buildings and hospitals.”

The Democrats believe that the infrastructure spending will “create tens of thousands of good-paying jobs.”

The Payment

Republicans want the Dems to define how they will pay for it. Dems want to pay for it through tax hikes on corporations and families making more than $400,000 per year.

Republicans have vowed to oppose domestic and international tax increases. 

Democrats counter that their tax hikes won’t impact middle-class families by prohibiting new taxes on small businesses, family farms and families making less than $400,000 annually. 

The plan would extend tax credits for families and low-income individuals, including the child tax credit.

Democrats also want to increase funding for the IRS to boost tax enforcement, which Republicans oppose.

Absent from the budget resolution is an increase to the debt ceiling.

That omission will set the stage for another DC fight.

Senate Minority Leader McConnell sniped that, “Here’s the comedy: They won’t let Republicans have any say in this monstrosity… but they want our help raising their credit card limit to make it happen.”

Cutting Through The Noise For You,

Frank

 

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