Massive September Stimulus Package: Full Breakdown

hey everyone me kevin here here is a

comprehensive update on the next rounds

of stimulus for actually in this case

both

poor folks and richer folks which seems

odd but yes i kid you not presently

there are discussions to reintroduce the

elimination

of the salt tax deduction limit

that is state and local tax deduction

limits currently in place within the

social infrastructure bill

so we've got a lot to talk about i'm

going to go through exactly the status

of in the both infrastructure packages

time frames expectations where is

congress what the he double hockey

sticks is going on and everything else

and if there's anything in this video

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get started so first

yes it is true there is talk about

potentially bringing the assault tax

deduction limit removal back

to the discussion table some democrats

have vowed not to support any

infrastructure package if the salt a cap

is not nixed now for those of you who

are wondering what the heck this salt

deduction is it stands again for state

and local tax deductions and it

basically says that if you are somebody

who pays a lot of state income taxes or

you own a lot of real estate leading you

to pay a lot of real estate taxes

especially in high income tax states

specifically like california or new york

you have a present limit of ten thousand

dollars worth of deductions that means

you can only deduct ten thousand dollars

of state local tax dollars some people

spend a million dollars in california

just on income taxes but are limited in

how much they can actually write off on

their tax returns which is pretty rough

this would be a massive windfall for

wealthier individuals if it's included

and some democrats are vowing again not

to support the infrastructure package if

this cap is not included the removal of

this cap is not included in the bill

getting rid of this cap would cost about

400 billion dollars the potential

solution to offset this sort of rich

person stimulus is capping itemized

deductions at 28

and then moving the 401k deduction to a

tax credit so that way people could

still have tax deductions now that's the

rich person stimulus but what is the

status of that negotiation and how does

that affect everyone else especially

people who are not rich and the other

stimulus aspects of this bill well let's

be very clear we've got two bills that

we've got to deal with and right now

congress is nowhere to be seen that's

because congress is off through labor

day until september 13th when they come

back for just three lousy days the 13th

14th and 15th and then they take off

again until the 20th and then between

the 20th

and the 30th of september which keep in

mind there's a weekend in there as well

congress our house of representatives

and senate will have to somehow

pass not only the one trillion dollar

infrastructure package that's the hard

infrastructure package i'll break that

down again in just a moment but they'll

also have to pass the social

infrastructure bill which they'll likely

try to get done with budget

reconciliation which means they would

only need 50 democrats in the senate

which is all of them with kamala harris

as a tiebreaker and almost all of the

democrats in the house of

representatives so this means they're

walking a very very very fine line with

that social infrastructure package and

they're going to have to address the

federal budget and potentially raising

the debt ceiling because the united

states treasury has already told us in

fact it's on their website

that if the debt ceiling isn't raised

the united states may no longer be able

to make their payments as soon as the

middle of october or early november and

i'm not sure what's more concerning that

they don't know when they're going to

run out of money or the fact that

they're going to run out of money

solid disaster

but anyway the stakes are very very high

for these infrastructure packages we

already know the one trillion dollar

package has passed the senate and now

we're talking about this social

infrastructure bill and quite frankly i

think the easiest way to try to outline

exactly where we stand in all of this

mess is just to draw a quick little

picture because let's be real between

you and i and anyone else listening it's

a little complicated

let's take a quick little look over here

at the ipad okay here's how it's going

to work

so right now we've got a 1 trillion

dollar bill this has already passed the

senate you actually had

enough senators to pass this bill over

it was around 68 69 senators who passed

this bill to where budget reconciliation

which the democrats only have one more

opportunity to use was not necessary for

the one trillion dollar infrastructure

package so the one trillion dollar hard

infrastructure package that includes uh

money for a whole lot of things that's

already been passed by the senate just

to give you a quick preview that's 66

billion for railroads there's also a

line in there that the bill encourages

more food and beverage services on

amtrak routes

even if

amtrak loses money doing that yeah

that's written into law or in this bill

so soon to be written into law power

grid gets 65 billion broadband gets 65

billion water and pipes 55 billion cyber

resilience 47 billion 39 billion for

public transit airport's 25 billion

remediation for capping oil wells clean

up cleaning up mine so on 21 million

port 17 billion safety 11 billion

western water infrastructure now we need

that out here in california eight

billion dollars ev charging station 7.5

billion dollars electric school buses

7.5 billion dollars

it's a lot of hard infrastructure here

but let's go ahead and head back to uh

to our uh outline here of where we stand

with these actual bills so we got the

one trillion dollar package passed in

the senate this is the hard package

right

now we've got to go on over to the house

of representatives and this has not

passed the house of representatives yet

so we've still got some work to do

now we are expecting a vote to be held

on the 27th

of september for specifically this hard

infrastructure bill in the house of

representatives

but nancy pelosi has been pretty

motivated with especially with her

progressive democrats to kind of sit on

this hard infrastructure build until the

soft infrastructure bill is negotiated

this is the 3.5 trillion dollar

infrastructure plan it's a soft

infrastructure plan we'll talk about

what's in it in just a moment the salt

tax deductions by the way are being

negotiated in this soft infrastructure

bill i'll share more of what's in this

in a moment but this bill has not yet

passed the senate we actually have kind

of like a half or like maybe more like a

like this part of a check mark see like

if this is a check mark we kind of have

like that passed in the house because

they just passed an outline of roughly

what they want in the soft

infrastructure package and because this

is an appropriations measure and a

budget measure it's got a start in the

house so really they just kicked it over

to the senate now the senate is likely

to negotiate the three and a half or uh

yeah three and a half trillion dollar

package then if the senate checks it off

they can send it over to a to the house

for a vote but remember folks right now

we do not have a 3.5 trillion dollar

infrastructure package we have an idea

of a 3.5 trillion infrastructure package

and some rough suggestions as to what

may be included in it which again i'll

go through in a moment but i have no

idea how between now september 1st

and

september 20th

they're going to come up with a plan to

somehow negotiate and actually get this

bill done by the end of the month i just

don't see that happening i've been

around the block too many times with

these negotiations and everything ends

up taking longer especially since

congress is off

until the 13th

only to come back for three days the

senate comes back to work for three days

i doubt they're going to get this bill

done in three days

and then uh to come back to negotiate it

on the 20th

which is crazy but anyway

the goal is or nancy pelosi's hope is

that the senate passes and i'm going to

make this orange since we don't have

this done yet passes the bill in the

senate kicks it over to the house they

can pass

the three and a half trillion dollar

soft infrastructure package along party

lines likely i'm sorry it'll get past

the long party lines in the senate

likely with 50 votes over here but they

can only lose oops sorry that's aoc's

financial disclosure from a different

video

over here they can only lose a few seats

so they got to get i'm going to say

almost all

democrats on board uh over here can only

lose a handful here two or three and

then we're starting to get uh in trouble

in terms of actually seeing this happen

so i almost got to get all the democrats

on board here

then the house is if they get what they

want over here then nancy pelosi and the

house expect to pass the hard

infrastructure package and then we'll

have both really big packages

available

all right but we are nowhere near that

right now again so let's go ahead and

back up so this is where we stand right

now and you kind of see where we have to

get now what what is being talked about

in this

social infrastructure bill we keep

talking about infrastructure but it's

been so complicated to keep these two

things separate so what's in three and a

half trillion dollar bill well probably

inflation but i think that's for a

different video uh the this particular

plan has uh 300 billion dollars of

expansion to medicare medicare

potentially to cover dental vision

hearing under the spending plan

eligibility age currently at 65 for

medicare might even be lower uh biden

has previously suggested 60 but the

exact age is not known potentially

universal preschool paid family leave

federal support for child care and elder

care two years of free community college

pushing utilities to generate at least

80 percent of the nation's electricity

from clean sources by the end of the

decade and potentially a longer or

extension to that child tax credit where

you're receiving 250 dollars if you're

within income thresholds well you're

receiving 250 dollars per child under 18

years old or 300 a per child under six

years old per month

now keep in mind these are ideas right

now but guess what congress is doing

while they're

not in office or on vacation as we

sometimes like to say well they are

presently

very likely dining and whining with

lobbyists who are helping write the bill

for them

yes that's actually what happens you

oftentimes have lobbyists offer to write

these massive infrastructure bills and

write different parts of them and

basically it's kind of like somebody

comes up with hey i want these 20 pages

in hey i want these 60 pages in hey i

want these five pages in and a bill

comes together as really just a giant

bundle of all of these different pages

so that's why we end up getting these

like 2 000 page bills people are like

man who sits there and writes 2000 pages

nobody you have a bunch of different

lobbyists who offer to write 20 pages at

a time each and these are all

corporations that try to sneak in

loopholes and get their representatives

and go this is good right this good

that's what you want right they slide in

it's all a really messy and kind of

disgusting business

i have learned a lot since may about how

bizarre the whole process is because

well you probably know i'm running for

governor in california and it's been

some

it's been enlightening

but anyway hey but hey we're doing well

another poll came out today we're

showing that 22 percent for recall votes

let's go that's why you know 22 percent

we could win with that out in california

that's great if new zealand gets

recalled but anyway

so uh yeah basically lobbyists are going

to be pushing to water down these tax

increases i'm sure there are going to be

other lobbyists who are trying to you

know get other provisions in we're going

to see this potential rich person

stimulus the salt tax deduction i'm

going to be very transparent here i

would love that

i'm being entirely transparent because i

own a lot of real estate this benefits a

lot of people in real estate i also pay

a lot of money to california in income

taxes and i would love to pay less

so

obviously we'll see what happens but i'm

more interested not in myself so much

that doesn't matter so much to me uh

financially it's just a number i'm more

interested to see if we're going to get

some more of these social infrastructure

bills for other folks especially those

in need because i'm all for supporting

folks in need i've personally not seen

anything about student debt in here or

trying to facilitate uh rental uh

payments uh like rent relief payments

that has just been a complete cluster

they've only gotten about 10 out which

is just disgraceful and disgusting but

anyway the infrastructure package will

be partially paid for by tightening

enforcement on uh cryptocurrencies and

basically taxing cryptocurrency gains

they're going to be some complications

here for miners and companies to be

determined i'm sure there'll be some

amendments over here

then uh it's also worth noting that

there's talk about spending 125 million

dollars to quote test the feasibility of

a road usage fee

kind of like a per mile tax they're

gonna spend 125 million dollars to

think about

if they want that tax

yeah okay uh possibly also raising the

marginal tax rate for wealthier people

to 39.6 percent so it's kind of like a

give and take there for rich people i

suppose uh increasing capital gains

taxes uh well there you go again

if your income's over a million dollars

you may have a little bit more of a

little bump there on uh

capital gains especially long-term

capital gains bumping that to 39.6

plus the obamacare surcharge on top of

that of 3.8 which means you would be

paying a federal rate on long-term

capital gains over a million dollars of

43.4

which is almost half of it there's also

talk about potentially getting rid of

the 1031 tax deferred exchange removing

the stepped-up tax basis for estates

when folks die and pass to their heirs

appreciated property at a new stepped-up

tax basis which basically means that air

gets to save a butt load of money in

taxes and democrats are also eyeing

compliance to raise revenue from

households uh basically earning more

than a 400 a thousand dollars per year

by calling for more

reporting to the irs and more

fraudulent inspections of tax returns or

inspections for fraud potentially more

audits there's also talk about

potentially even raising the corporate

tax rate which you can expect lobbyists

will be very busy at dealing with so

there you go folks if you found any of

this stressful well like i said go to

medkevin.com lemonade thank you so very

much for watching it was a blast and

folks it's good to be back we'll see in

the next one

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