By Isaac Cohen*
President Joseph Biden announced this week he intends to seek congressional approval for another package to support economic reactivation. As described by President Biden over the weekend, the new package has two main components, amounting both to $3 trillion. First, infrastructure and environment projects, executed over the next decade and second social protection programs, such as child-care and family support, which will be announced in April.
The presentation separately of both components responds to a legislative strategy whereby the infrastructure portion will seek bipartisan support, while the social protection portion can be approved by the slim majority the Democratic Party has in the Senate.
President Joseph Biden also said that, by contrast with the previous rescue package paid for with debt, the second package requires tax increases for corporations and individuals, which have yet to be presented in detail. Thus far, one of the main campaign promises made by President Biden was that taxes will not be increased for individuals making less than $400,000 per year.
The response from the opposition did not make itself wait. Senator Mitch McConnell, Republican minority leader, told Fox News, “They’re now cooking up yet another package they’re going to call infrastructure, but it’s going to be a Trojan horse that includes massive tax increases.” (Wall Street Journal 03/29/21).
*International analyst and consultant, former Director ECLAC Washington. Commentator on economic and financial issues for CNN en Español TV and radio, UNIVISION, TELEMUNDO and other media.