President Biden’s Economic Recovery Part II
President Biden unveiled the second phase of his two-part economic recovery plan this week and the plan is expected to cost roughly $1.5 trillion, but is not expected to include a health care push that would expand insurance subsidies and let the federal government negotiate with manufacturers to lower the cost of prescription drugs. Democratic lawmakers have stated that they intend to pursue a health care initiative.
The Biden Administration plans to pay for the legislation by raising the top marginal income tax rate from 37 percent to 39.6 percent -- the rate that existed prior to the 2017 Republican tax cuts. The plan also calls for tax capital gains at the new ordinary income rate of 39.6 percent on incomes above $1 million. The new economic bill will have the same problems that the infrastructure proposal is facing with partisan standoffs.