Yikes on Stimulus Package! [Build Back Better].

oh boy we got some big numbers here but

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smokes folks it's official the buildback

bettor has just received a congressional

budget office budget score and it turns

out the buildback better plan does not

have enough money in tax increases to

pay for itself this is breaking news the

plan does not have enough money to pay

for itself however it is close and you

have to look past the details of the top

line to determine what's actually going

on inside because there are some

adjustments and we get pretty darn close

let's talk about that keep in mind

though the house is expected to pass the

buildback better plan despite the cbo

score which just came out tonight but

whether or not the house actually does

does not matter this summary will still

be applicable so let's talk about what's

going on first the congressional budget

office which is a nonpartisan group that

essentially reports on how much income

and uh spending or expenses there will

be associated with a piece of

or a bill legislation reports that uh we

should expect 1.636

billion in spending keep in mind the cbo

does not include tax credits as a form

of spending even though when we hear

about this 1.75 trillion dollar

infrastructure plan or the social

infrastructure spending plan we do

include tax credits in that but the cbo

does not so their estimate comes in at

1.636

we raise 1.269

of revenue which means technically we're

adding to the debt by

367 billion dollars over the next 10

years now this could potentially be

minus

the irs tax enforcement provision which

is expected to bring in an additional

207 billion dollars bringing the deficit

to

160 billion dollars over 10 years rather

than 367. so you're going to hear a lot

of clickbait around that 367

number but it's more realistically 160

and if you look at the cbo's actual

spreadsheet and you click notes you'll

see the memo for that at the bottom but

most people are going to miss that so

keep that in mind when you're listening

to the news or you hear people talk

about it it is a net cost of 160 billion

dollars per the cbo over the next 10

years now there's an expectation that

this could potentially hurt the chances

for moderates like joe manchin to

actually support this bill when it goes

to the senate this is another thing to

keep in mind even if the house passes

this bill tonight it's going to

essentially be meaningless until we

actually get kirsten cinema and joe

manchin on board we do expect something

to get done

between now and the end of the year

though because we've got to push the

debt ceiling down the road again and

we've got to increase the budget or pass

a new budget for the government again

otherwise we shut down or default on our

debts both of which are obviously bad

now currently we're expecting that this

is going to provide a lot of ammo to

republicans to pressure people like

kirsten cinema and joe manchin not to

vote for this bill in the senate

republicans are already tweeting that

joe biden's buildback better plan is not

paid for it's not a zero dollar bill now

it's over 160 billion dollars that we're

not going to build back better that

we're going to raise taxes and we're

going to make inflation worse this is

actually one of the sticking points for

joe manchin who's seen as that pivotal

vote to actually get this bill through

the senate remember this might pass the

house tonight it's not going to mean

anything until it goes over to the

senate it's got to pass the senate and

joe manchin somebody's saying we should

wait we should wait to see what happens

with inflation we can't keep spending

money we've got to be careful because

inflation is coming in way hotter than

expected and so far it doesn't feel like

it's transitory at all now regarding the

irs provision the white house has told

us that they expect to raise about 411

billion dollars from more audits done on

americans to actually raise 411 billion

dollars the congressional budget office

actually thinks that new audits are only

going to bring in about half that or 207

million dollars that's that 207 million

that you can add to that 367 number

you're going to keep hearing to get to

160 billion of extra debt we're going to

have over the next 10 years but again

the irs

and the white house were expecting to

raise 411 billion it looks like the cbo

believes they're only going to end up

getting about half that expectation keep

in mind joe biden progressives janet

yellen have all said that this bill is

going to be paid for republicans are now

going to be able to latch onto the fact

that that is not true it's actually

going to cost 160 billion dollars over

10 years it is not completely paid for

so it is possible that this could end up

leading to

talk about more tax increases

in minor amendments before this bill

passes maybe it gets amended or we get

some additional tax increases amended in

in the senate and then that could always

get revised in in the house and this

bill actually passes sometime in

december is the expectation right now

keep in mind some of the things this

includes 300 billion dollars for climate

change one of the largest climate change

provisions actually the largest climate

change uh legislative tax that we've

ever had in history in america 300

billion dollars includes those ev tax

credits as well

7 500 for evs and an additional about

forty five hundred dollars if those evs

are made with union labor like gm or

ford but not tesla for that extra

portion four weeks of paid leave keep in

mind this is still up in the air the

house version has four weeks of paid

leave estimated about a 200 billion cost

but the white house actually took that

out in a revised version so this is a

little up in the air 300 billion for

child care universal pre-k again this is

on the verge of passing the house

however three to four people vote no on

this it's not going to pass but again

even if it does it's all going to come

down to the senate

relief for the deportation of

undocumented workers or undocumented

people in america some form of relief

for people who are being deported

fifteen percent corporate minimum tax

five percent sur tax on incomes over ten

million dollars three percent extra

income tax on extra any income over 25

million dollars kevin o'leary by the way

the shark on shark tank says that this

is going to be the uh worst attacks

americans have ever seen the worst

amount of taxation on americans we've

ever seen and uh living in states like

california or new york would be the

worst places to live in the world in

terms of taxation this is something that

kevin o'leary said on his channel but

anyway taxes on stock buybacks

retirement accounts there also is uh

expected to be a medicare provision that

will get passed so that medicare can

negotiate drug rates this is expected to

save 79 billion for medicare over this

next decade but the cbo also mentioned

that we would likely end up with one

less drug coming to market

over this next 10 years and then an

additional four fewer drugs coming into

the market over the next 10 years

thereafter because there would be less

money or less profit for the companies

to potentially use for new drug research

now the salt cap is also expected to be

bumped from ten thousand dollars to

eighty thousand dollars and that uh

deduction cap

expiration being pushed down to twenty

this certainly helps high property tax

states like texas or high state income

tax states like california or new york

where those individuals would be able to

write more money off on their taxes but

again big thing is this does put us

about 160 billion dollars more into the

whole this is the cbo report if you

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can't wait thanks so much for watching

this video youtube influencer kevin

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