Fecha Actual:May 19, 2022

NFP and Biden’s new plan

With the aim of boosting the largest economy in the world, J. Biden since his inauguration, proposed economic stimuli. It began with the stimulus program signed in February of 1.9 billion dollars and continues with a new infrastructure plan. In this context of debate, tomorrow the non farm payrolls and the unemployment rate will be published.

In this context of debate on the new Infrastructure and economic injection plan, tomorrow the non farm payrolls and the unemployment rate will be published. Data that displays employment levels and economic activity on a monthly basis. As the data of the weekly unemployment benefit applications, it will show in numbers the temporary advances marked by the inoculations and the fiscal stimulus.

According to the Labor Department, applications for unemployment benefits rose to 719,000 in the last week, despite the fact that the previous week had shown a significant decline to 658,000. Regarding the unemployment rate, the projections are located in a slight decrease from 6.2% to 6%. While the change in non-agricultural employment, a very important rebound is projected going from 179 K to 379 K.

The Infrastructure Plan, which involves an injection of two trillion dollars, will use infrastructure, climate change and social security, to alleviate the effects of the pandemic that has been accentuated on inequalities. The objective is to sustain the economy, through state and tax financing. The plan would have resistance from the Republicans, some Democrats and from the business sector. The differences are mainly in the destination of the funds and in the extent of those funds.

The proposed infrastructure plan would obtain financing through a tax increase on companies from 21% to 28% and provides for a modification to the tax code on business funds that move abroad. In turn, it could also be financed through Build America bonds.

These are bonds created during the Obama administration, and are subsidized by the federal government. Although not yet confirmed and a long round of debates is expected, these bonds were created with the objective of allowing different entities, states and agencies, to sell for a limited time taxable debt with the federal government contributing 35% of the interests.

The plan that they hope to approve by July 4, will probably find modifications since, for example, Richard Neal, who chairs the tax-writing House Ways and Means Committee,, insists on including other financing measures such as bonds and tax credits. enlarged.

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