The Dow Jones Industrial Average closed in on a 0.41 per cent increase at 34,464.64 US Dollar. Dow futures were up 180 points, a 0.5 per cent increase. US stocks are steadily opening as optimism spreads across the markets over the economy recovery.
The Dow Jones Index will react to President Joe Biden’s release of a budget that will see the federal spending surge to $6 trillion in the next fiscal year. The federal annual deficits over the next decade will be more than $1.3 trillion before the budget comes to a balance. Biden intends to improve infrastructure and expand social programs.
Joe Biden intends to roll out $2.3 trillion to infrastructure and $1.8 billion to education. Despite not having consent from the congress, Joe Biden seems optimistic that this authority would be granted to him. The budget will reflect a sharp contrast from Donald Trump’s governance.
Under Biden’s plans, the Health department would get a 28 per cent increase from the previous years. The Education Department would receive a 41 per cent increase as the Commerce Department would jump 28 per cent above its normal cut.
President Joe Biden has proposed an increase in taxes on the wealthy taxpayers and corporations. However, Biden has promised not to increase taxes for those earning less than $400,000.
The senate Republicans offered President Joe Biden a $928 billion counteroffer for infrastructure. The senates plan includes $506 billion for infrastructure, $56 billion for airports, $22 billion for waterways and ports, among others. However, Biden’s latest offer to the Republicans was $1.7 trillion which was $600 billion less than his original plan.
In March this year, President Joe Biden signed a coronavirus relief package worth $1.9 trillion. The bill ensured payments of $1,400 were sent to most Americans. The bill also extended a $300 per week unemployment insurance boost and expanded child tax credit for a year.
This happened a few months after Biden had signed a $900 billion COVID relief package and a $1.4 trillion government spending bill on December 27th ,2020. The law included direct cash payments, funding for small businesses and enhanced unemployment benefits.