Reports (Bloomberg, Axios) continue to point to an increased likelihood that Senate Democrats will fail to finalize the Build Back Better social and climate spending program, to an estimated $ 1.750 billion, before the end of the year. year. Sticking points persist, including the SALT deduction cap, paid vacation time and the complexity of tax changes. The intractable Democratic Senator Joe Manchin is still playing his disruptive role, after his repeated claims that Democrats should ‘take a step back’, especially given the resumption of concerns about inflation.
A CBO report requested by Republicans last Friday put the cost of the overall bill at $ 3 trillion over ten years if all arrangements were made permanent. The CBO had previously determined that the bill, as passed by the House, would add $ 200 billion to the deficit. Bank of America estimated that the final legislation would increase U.S. GDP by 50 basis points next year, but create heightened risks for inflation.
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