Biden Unveils $775 Billion Plan For Universal Child & Elder Care
Tue, 07/21/2020 – 08:12
Days after unveiling his ‘Green New Deal’ inspired infrastructure plan that will move the US to “100% green energy” by 2035 (much to the dismay of the energy industry, and taxpayers, who would probably rather see that money go to building bridges, airports and highways), the former Vice President is back with another expansionist, big-government plan to implement universal childcare across the US.
Biden’s plan calls for shelling out $775 billion to boost child care and care for the elderly. We imagine Biden’s campaign advisors feel that such a promise might resonate with suburban parents anxious about school closures and the struggle to find child care while they work.
The third plank of the Democratic nominee’s economic plan, it calls for universal preschool for three- and four-year-olds and would also eliminates the waiting list for home and community services under Medicaid while offering low-income and middle-class families a tax credit of as much as $8,000 to help pay for child care. If all that weren’t enough, the law increases pay for caregivers and educators.
Amusingly, Biden’s “caring economy” plan, if enacted, would be financed by new taxes on the sales of commercial real estate, which would deal another blow to the already hard-hit CMBS market.
Here’s more from BBG:
Joe Biden on Tuesday unveiled a $775 billion plan to bolster child care and care for the elderly that would be financed by taxes on real estate investors with incomes of more than $400,000 as well increased tax compliance by high-income earners.
The Biden campaign did not fully explain how the plan for a “caring economy” would be financed, but officials highlighted some tax breaks they would seek to eliminate to raise revenue.
In particular, a senior campaign official said a Biden administration would take aim at so-called like-kind exchanges, which allow investors to defer paying taxes on the sale of commercial real estate if the capital gains are reinvested in another property. The official also said they would prevent investors from using real estate losses to lower their income tax bills.
Biden is scheduled to deliver a speech on the policies Tuesday afternoon in New Castle, Delaware.
Is Biden’s latest shuffle leftward merely a pose, or does the former VP mean what he says about this ‘head start on steroids’ plan? Well, for what it’s worth, Biden shared details of the plan during a fundraiser hosted by a senior exec at Blackstone.
On Monday, Biden teased his “caring economy” plan at a fundraiser hosted by Blackstone Group President Jonathan Gray, telling donors he wanted to make it easier for elderly Medicaid recipients to receive care at home.
Across the universe of American finance, what more suitable industry exists than private equity to represent Biden’s “caring economy” ethic?
Another element of Biden’s economic plan (which he obviously cribbed from President Trump’s “America First” agenda) is a push for more union jobs.
Because if there’s anything the private equity is more well-equipped to create, it’s high-paying union jobs. Skeptical? Don’t worry, friend. Because according to Bloomberg, Biden reassured his private equity donors that powerful unions are “a totally market-based” phenomenon.
Biden also defended his broader economic agenda, which includes a push for more union jobs, telling the high-dollar donors: “I hope I don’t offend any of you by that but I really think it is totally consistent with a market economy and moving forward.”
Whether this platform seems genuine to you, or just another example of a politician saying whatever he believes will help him get elected, this isn’t the first time we’ve pointed out that Biden’s agenda seems like a hodge-podge of rhetoric designed to appeal to two hopelessly disparate voting blocs: Midwestern swing voters and AOC-loving progressives.
To us, that sounds like a recipe for alienating both.