Biden tax hike: What we know as Democrats eye multi-trillion dollar infrastructure deal yahoo.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from yahoo.com Daily Mail and Mail on Sunday newspapers.
Conservative lawmakers have been pushing for a balanced budget amendment since the mid-1990s.
ADVERTISEMENT
While the idea is dead on arrival in a Democratic-controlled Congress, centrist Blue Dog Democrats threw their support behind a modified version of the plan in 2019. That version would allow for deficit spending in recessions and times of emergency, reflecting the views of most economists.
Green’s amendment comes as Democrats advance a $1.9 trillion COVID-19 relief bill, and are beginning discussions on a large scale infrastructure bill that could range anywhere from $1 trillion to $3 trillion.
But the GOP orthodoxy on deficits has been scrambled in recent years. Under former President Trump
The Congressional Budget Office expects federal debt to reach 102% of US GDP in 2021.
The estimate doesn t account for the $1.9 trillion stimulus plan Democrats are set to pass.
The CBO sees the debt pile then shrinking for a few years before rising into the next decade.
Total US public debt is set to overtake the size of the national economy in 2021 even without the $1.9 trillion stimulus plan sought by President Joe Biden, according to the Congressional Budget Office.
Federal debt is projected to reach 102% of US gross domestic product through the end of the year, the nonpartisan agency said in a Thursday report. That s up slightly from the end of last year when the share reached 100%.
The Globe and Mail Brenda Bouw Published January 12, 2021
wutwhanfoto/iStockPhoto / Getty Images
The threat of a higher capital gains tax rate is resurfacing in conversations between financial advisors and their clients as Ottawa looks for ways to pay down a soaring deficit amid billions in spending on pandemic-relief measures.
There has been speculation ahead of each federal budget in recent years that the Liberal government will increase the so-called capital gains inclusion rate, currently at 50 per cent, which is the percentage of capital gains included in taxable income. However, advisors say the unprecedented spending on COVID-19 programs, which has pushed the projected size of the deficit to almost $400-billion, makes a capital gains tax increase more likely.