Friday, 19 August 2022 22:14

What Biden’s Bill Means for U.S. Economy

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While a far cry from the size and scope Dems were originally hoping for Biden’s multi-agenda bill will hit his desk after passing the house, but what does this mean for the market and the U.S. economy? The bill is $430 billion dollars and will change taxes, healthcare, and climate policy. The plan hopes to slash carbon emissions by 40% within the decade spending a hefty $369 billion. However, it plans to generate $737 billion through tax changes and will have a net impact of $300 billion in deficit reduction according to the CBO. For the market, the stock buyback provision will be critical, but congress says it will generate $74 billion on its own. Still, this has been a key avenue for corporate spending in the last decade and Wallstreet will claim it forces inefficient maneuvers by corporations. The inflation reduction act will only make a very small impact on inflation over the next decade according to experts.


Finsum: Equity buyback taxes are very dumb, distorting how companies effectively spend money with excess revenue will only hurt the economy and the companies.

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