馃攳
Analysis of Biden's budget proposal for 2023 fiscal year - YouTube
Channel: unknown
[0]
getting back to the president's budget
[2]
his plan will reduce the federal deficit
[4]
he said he plans to raise taxes on the
[6]
very wealthiest americans a minimum 20
[9]
percent tax on the incomes of households
[12]
worth a hundred million dollars or more
[14]
but the president also says anyone
[16]
making 400 000 a year or less will not
[19]
pay any more in taxes the president also
[21]
plans to raise the corporate tax rate to
[23]
28
[25]
of course congress is responsible for
[26]
passing and implementing the budget so
[28]
nothing here is a done deal joining us
[30]
now for more on this is terry haynes he
[32]
is the founder of pangaea policy in
[35]
washington d.c which predicts and
[37]
analyzes u.s and worldwide macro policy
[41]
and politics terry welcome great to have
[43]
you with us
[44]
so let's get to president biden's budget
[47]
proposal for fiscal year 2023 what do
[50]
you believe it means for u.s investors
[54]
what i've told markets today
[56]
is that pretty much the same thing i
[58]
tell them every year is that the you
[61]
know this year's budget regardless of
[62]
the president frankly this year's budget
[65]
does not matter uh and
[68]
you know it and the reason for that is
[70]
very simple what matters on fiscal is is
[74]
spending appropriations
[76]
that congress and the
[79]
white house agree upon congress passes
[81]
it
[82]
and the president signs it and uh that
[85]
just happened for this current fiscal
[87]
year uh a couple of weeks ago and
[90]
you know it took almost six months or
[92]
more past the beginning of the fiscal
[93]
year to negotiate uh the president is
[96]
bound to to deliver a new budget and uh
[99]
he so he has today but what we have here
[102]
is a situation where budgets are have
[105]
nothing to do with the actual spending
[107]
decisions they're aspirational documents
[110]
uh and
[111]
frequently they are political documents
[114]
like always their political documents uh
[117]
the president actually acknowledged that
[119]
at the very top when he quoted his
[120]
father saying you know tell me what you
[122]
value so you know what the what the
[124]
budget is by definition including the
[126]
president's definition is an
[128]
aspirational document about uh what he
[131]
and his party value the most uh you know
[134]
that's not going to survive though what
[136]
what ends up happening in these
[138]
negotiations and the actual spending
[140]
bills is that you get pretty much the
[143]
same sort of
[145]
spending both domestic and defense
[148]
that you have in previous years with
[150]
small top-ups after about a six-month
[152]
fight where republicans talk about
[155]
getting rid of domestic programs and uh
[158]
and topping up defense and democrats
[160]
talk about uh maxing out uh domestic
[163]
programs and taking money out of defense
[166]
uh in the end a compromise is reached
[168]
and
[169]
we ultimately move on as we did a couple
[171]
of weeks ago
[172]
but this budget uh has very little to do
[175]
with that frankly uh it's much more a
[177]
political document designed to
[180]
provide a set of talking points going
[182]
into the midterms than anything else all
[184]
right so nothing you heard today from
[186]
the president will in will change your
[188]
investing outlook as what i i believe
[190]
you're saying what would change your
[193]
investing outlook
[195]
well i think uh generally speaking it is
[199]
you know the one the one place where
[201]
i've said that i think the president's
[202]
budget is uh is a bit consequential is
[206]
in this so-called billionaires tax uh
[208]
but nothing like what the president
[210]
proposes today uh will be enacted now
[213]
they've talked about for the democrats
[215]
that the pr and the president have
[217]
talked for quite some time about
[219]
uh build back better program uh your
[222]
correspondent uh
[223]
noted this right before the president
[226]
went on air and
[229]
you know what's going to end up
[230]
happening there is you know they'd like
[232]
to resuscitate and do something on
[234]
buildback better
[237]
people in washington now talk about the
[239]
build back better
[240]
program being dead
[242]
i like to quote the princess bride movie
[244]
and say that it's only mostly dead
[246]
senator manchin continues to
[250]
to offer ways in which certain
[252]
priorities could be addressed some
[254]
something on climate uh drug pricing
[257]
regulation a variety of other things and
[260]
uh and you know would be amenable for
[263]
example to uh to look at how to raise
[266]
taxes slightly on the top brackets in
[269]
order to pay for some of that uh
[272]
you know and he's tried to engage
[273]
progressives on that a number of times
[275]
and so far they haven't wanted to
[277]
my theory is that at some point
[279]
progressives and democrats generally
[281]
want to that they'll you know they'll
[283]
they'll take a little bit to try to get
[284]
into the midterms with a with a record
[286]
of accomplishment on at least some of
[288]
these things uh but the rest i don't see
[291]
uh i i don't see mattering that much
[293]
frankly we've known for some time we're
[295]
going to get increased defense spending
[297]
uh well before this budget uh you know
[300]
the circumstances of the moment demand
[302]
it uh you know
[304]
and as to the rest congress will work
[306]
that out on a bipartisan basis and it'll
[308]
be largely the same well let me just
[310]
dive in a little bit to your thoughts on
[311]
the billionaire's tax because you did
[312]
say that was the one thing that could
[314]
perhaps change your in investing outlook
[317]
uh you know i'm curious what your
[318]
thoughts are about it because obviously
[320]
it's called the billionaires tax but
[321]
it's a little more complicated than that
[323]
as as all tax code is um but there are a
[325]
lot of americans who do want to know you
[327]
know why doesn't elon musk and jeff
[328]
bezos why don't these people pay the
[330]
same tax rate that i pay
[332]
you know of course we understand that
[334]
there it has to do with you know stocks
[336]
and divestment we understand all of that
[337]
but there's still an appetite for uh you
[340]
know
[340]
there's still an appetite in this
[341]
country for feeling as if those very
[343]
wealthy people are paying a little bit
[345]
more than they're paying now um so how
[347]
would you you know how would you
[349]
reconcile that
[351]
well i i think you're absolutely right
[353]
and
[354]
what you just stated by the way that is
[356]
a and i don't mean to denigrate it by
[358]
saying i think that's a largely a
[359]
political and rhetorical uh statement
[362]
coming out of the administration uh you
[364]
know how they're proposing to deal with
[366]
it specifically here is by raising rates
[369]
uh and you know to uh 20 and but not
[372]
controversially i think and probably
[375]
illegally uh taking in uh capital gains
[378]
that are unrealized you've got to change
[380]
the tax code itself to do that and i
[382]
think
[383]
the vast majority of congress would not
[385]
be interested in doing that i don't
[386]
think you're going to find any large
[387]
scale changes to the tax code
[390]
this year and the definition of income
[393]
certainly qualify as a large
[395]
a large change in the tax code uh so
[397]
that's number one uh you know would they
[399]
like to do something to increase the you
[401]
know but
[402]
come back to the basic statement would
[404]
they like to do something to increase
[407]
rates on the most wealthy americans
[410]
slightly in order to pay for some of the
[411]
things
[412]
that they want to do yes absolutely they
[414]
want to do that and they also want to be
[416]
out there
[417]
on the hustings before the midterm
[420]
elections uh saying that they're trying
[422]
to do that that that's a big priority
[424]
you know all that's fair in politics and
[426]
all that's fair in policy but in a
[428]
closely divided congress like this
[431]
with
[432]
a you know republicans and centrist
[435]
democrats likely not not agreeing with
[438]
how the administration wants to do that
[440]
i think biden's specific formulation is
[442]
not possible uh is something possible
[445]
sure lots of debts even centrist
[447]
democrats like manchin have expressed a
[449]
willingness to uh to engage on that but
[453]
manchin for example doesn't get
[454]
engagement from progressives about what
[457]
the program should be in a resuscitated
[460]
buildback better and exactly how they
[463]
should pay for that so until there's
[464]
some uh some meeting in the minds on the
[467]
democratic side because they've been
[468]
very riven by this over the last
[470]
six to nine months unless there's some
[472]
meeting in the mines on the democratic
[474]
side
[475]
uh the the president's desire is frankly
[477]
never going to get there all right so it
[479]
sounds like you don't think this budget
[480]
plan is going too far it won't get
[482]
through congress
[484]
all right i think well i think it's just
[486]
not going to happen that's all and what
[487]
we end up with is the same kind of
[489]
spending we've had before
[490]
terry haynes thank you so much we
[492]
appreciate your insight
[495]
thank you
Most Recent Videos:
You can go back to the homepage right here: Homepage