The tug-of-war over two of Joe Biden’s prestigious projects is nearing its end. It still promises to be a good year for the US president, whose polls have been on the decline for months because he has carried out too few election promises. Success could come just in time for the upcoming Virginia and New Jersey elections.
On Thursday afternoon, after a meeting with his party, Biden published his proposal to resolve the dispute over his social and climate package. Immediately afterwards, he sat in Airforce One and flew to Rome, to Pope Francis and the meeting of the G20, which is followed by the climate summit in Glasgow. There, too, it is expected that Biden can show something: The international community wants to know how the US intends to meet its climate commitments.
Domestically more important for Biden is the price tag of his “Build Back Better” agenda. Biden had proposed $ 3.5 trillion, now it’s half as much at $ 1.75 trillion. The downward trend is the result of a month-long dispute between the moderate and the left wing of the Democrats. Done in public and emotionally charged, it exposed deep cracks. Moderate Senator Joe Manchin recently said the enormous pressure had cost him tears several times.
Nevertheless, apparently ice cold, he played out his position of power together with Senator Kyrsten Sinema. The Democrats rely on every single vote in the Senate. The veto power allowed the two to tear apart both climate and social measures and their financing. Central demands of the left wing of the party such as free college access, lower drug prices and paid care and parental leave of twelve weeks have fallen by the wayside.
Coal entrepreneur Manchin prevented the introduction of a carbon dioxide tax and a system of sanctions for energy companies. Together with Sinema he torpedoed income like a new billionaire tax to finance additional expenses.
More money for preschools, tax incentives for climate protection
Biden had to go far towards the moderates. Now he is going on the offensive with one last offer to force his quarreling party to a quick vote. If the maneuver succeeds, he can show a symbolic success with the halved sum, especially since a whole series of heartfelt concerns of the Democrats seem to have been saved.
The preschool for three- and four-year-olds is being expanded, an increase in child benefit and tax subsidies for low-wage earners is being extended by at least one year, Obamacare is being expanded somewhat, and Medicare for the hearing impaired is being improved. 555 billion dollars are to flow into climate protection, mainly in the form of tax incentives for climate protection and the electrification of transport.
Companies and high-income Americans should pay for the expenses. Companies should pay at least 15 percent tax, income over ten million dollars are taxed more heavily. An expansion of the IRS tax authority is expected to bring in 400 billion dollars.
It was initially unclear whether Biden’s package had already received the approval of all Democrats. Senator Sinema welcomed his proposals after months of criticism or silence. Manchin has not yet looked at the cards.
Construction in the progressive wing
Average dissatisfaction to consternation spread across the progressive wing. Some members had already threatened to crash a package that was too small. But they have no choice but to accept the shrinking cure, if they want a social and climate program at all. The left Senator Bernie Sanders, for example, who had initially asked for six trillion dollars, now praised Biden’s version as a work that Congress had not approved since the 1960s.
In order to have a pledge in hand, the left-wing MPs have postponed the vote on a $ 1.9 billion infrastructure package until a majority has been secured for the social and climate package. How quickly these votes will now take place was initially not foreseeable on Thursday, but things should move forward quickly. However, the progressive spokeswoman Pramila Jayapal insisted on seeing the specific legal texts first.
The Republicans, it is clear, are not deviating from their fundamental opposition, not even those from states that would benefit. Greg Steube of Florida summed it up like this: “The Biden Agenda is ruining Americans.”