Is Biden’s plan for the economy and climate in jeopardy?
The influential Democratic Senator Manchin is willing to support the Build Back Better, Biden's grand plan for the economy, social spending and energy. But under specific conditions. All the details
US Senator Joe Manchin, a member of the Democratic Party and representative of the state of West Virginia, is available to support the climate and childhood measures contained in the Build Back Better reform, the great plan for the economy, social assistance and infrastructure sponsored by President Joe Biden.
THE REQUESTS
Manchin, however, according to Axios' revelations yesterday, has set specific conditions: he is willing to support the White House agenda, but only if the credit of over one and a half billion dollars for families with children is eliminated, or if the maximum income ceiling will be drastically lowered to be able to access it.
Biden's proposed child tax credit is $ 3,600 per child per year. Families with incomes of up to $ 400,000 can receive it.
WHY MANCHIN IS IMPORTANT
On December 19, Manchin had spoken out against the Build Back Better reform, which involves large expenses and has therefore created concerns in some political areas – especially among Republicans and centrist-oriented Democrats, such as Manchin himself – regarding the increase public debt and inflation.
For the Biden administration, Manchin's support is crucial. Unlike the House, where the president's party enjoys a comfortable majority, in the Senate the Democrats are in fact on a par with the Republicans: 50 seats each (the Democratic side actually has two independent senators).
Manchin, therefore, is extremely influential: the balance in the Senate and also the success of Biden's political program depend on his vote.
Manchin, however, is very skeptical of the energy transition promoted by the White House, which envisages an increasingly clearer detachment from fossil sources in favor of renewable ones, in order to reduce United States greenhouse gas emissions to net zero. The Biden administration's plan includes about $ 550 billion for clean energy and climate investments.
Manchin represents West Virginia, a culturally conservative state where the coal industry plays a major role.
WHAT MANCHIN THINKS
According to Axios sources, Manchin reiterates to his fellow senators that he fears that the increase in public spending induced by the Build Back Better reform could push inflation levels even higher. In December the rate was 6.8 per cent; on January 12, the Bureau of Labor Statistics (an agency of the US government) is expected to release the new data.
THE SCENARIOS
Axios writes that the impasse in the Senate could be resolved by eliminating the child tax credit from the Build Back Better reform. The measure is actually supported by some Republican leaders, such as Utah Senator Mitt Romney, but Democrats may not be able to bring enough opposition members to their side to pass the law.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/joe-manchin-build-back-better/ on Tue, 04 Jan 2022 09:18:03 +0000.