NEW REPORTS: President Biden’s Build Back Better Framework Will Boost The Economy, Cut Deficits
November 4, 2021
|Today, a new Moody’s report revealed that President Biden’s Build Back Better Framework and Bipartisan Infrastructure Deal will create jobs, boost economic growth, support businesses, and build a stronger middle class. Not only that, a new report from the nonpartisan Joint Committee on Taxation confirms the Build Back Better Framework is not only paid for, but will have a net reduction on the deficit.
President Biden ran on the promise to build an economy that works for everyone, not just those at the top, and today’s reports demonstrate how his economic agenda will deliver for the American people.
President Biden’s Build Back Better agenda would strengthen economic growth and primarily benefit working Americans:
Moody’s: “It will strengthen long-term economic growth, the benefits of which would mostly accrue to lower- and middle-income Americans.”
Moody’s: “Real GDP growth would average 3.2% per annum during Biden’s term and 2.2% over the next decade, compared with less than 2.8% and 2.1% per annum if the legislation fails to become law.”
President Biden’s Build Back Better agenda would create millions of new jobs, lower unemployment, and increase labor productivity:
Moody’s: “In terms of employment, under the infrastructure deal and reconciliation package, there are 2.4 million more jobs at the peak of the employment impact by mid-decade, and unemployment is a full percentage point lower. Labor force participation is also higher, although the full boost to participation occurs after the 10-year budget horizon.”
Moody’s: “Accessible childcare facilitated by federal support to childcare providers has especially strong employment effects for single mothers, mothers with young children, and lower-income moms.”
Moody’s: “A second important macroeconomic impact of the reconciliation package is that it would increase labor productivity by raising the educational attainment of the workforce via universal pre-K, expanded funding for higher education. Increased funding for workforce development would also lift the skill level of the workforce.”
It would address the income and wealth gap by providing benefits to working Americans and making the wealthy and corporations pay their fair share:
Moody’s: “The reconciliation package also helps address the wide and growing disparity in the nation’s income and wealth distribution. It targets most of the social investments to lower- and middle-income households and taxes multinational corporations and the well-to-do to help pay for these benefits.”
And President Biden’s Build Back Better Framework is fully paid for and would actually reduce deficits over the long term:
The Hill: “Tax-increase provisions in House Democrats’ latest version of their social spending package would raise nearly $1.5 trillion over 10 years, Congress’s tax scorekeeper said Thursday… House Ways and Means Committee Chairman Richard Neal (D-Mass.) told reporters that the JCT score indicates that the bill will be fully paid for when the tax increase, IRS and drug pricing provisions are all taken into account.”
The Hill: “The Treasury Department said that after taking into account the IRS and drug-pricing provisions, the bill would include about $2.2 trillion in revenue-raisers. Treasury estimated that the IRS investments would raise $400 billion, and said that the prescription drug provisions would produce about $250 billion in savings. ’The investments and revenue provisions of the Build Back Better package would raise over $2 trillion in offsets, making the entire package paid for over ten years and would reduce deficits over the long term,’ Treasury Secretary Janet Yellen said in a statement.”