Longtime readers of the Wednesday Wonk will probably remember a series that I did on the budget and appropriations process. Why on earth are you bringing the budget process up again? Well, as it turns out, the new budget contains some clues about the status of Build Back Better. Let’s take a closer look.

The Washington Post reports, “President Biden unveiled a $5.8 trillion budget plan on Monday that reflects a major administration pivot to rein in future borrowing, introducing a proposal that would reduce the national deficit by roughly $1 trillion over 10 years.” The article continues, “The administration’s newfound emphasis on deficit reduction comes amid a potential revival of negotiations over its economic agenda with Sen. Joe Manchin III (D-W.Va.), who has repeatedly emphasized his interest in a budget deal that would reduce the nation’s fiscal imbalance.” The article goes on to explain, “The Biden administration’s new budget both includes and excludes the Build Back Better items that the president has made the cornerstone of his economic agenda — not including the provisions as counting to the overall budget calculations, but still touting them in the budget document.”(emphasis added)

Likewise, Politico reports, “While the new fiscal year doesn’t begin for more than six months, Biden is using his budget request to detail plans he wants Congress to clear before then, including a major tax revamp that could help Democrats revive slices of their beleaguered Build Back Better package. The president’s budget acknowledges savings and revenue that would flow, for example, from tweaking the tax code and enacting policies that would drive down prescription drug prices — policies Democratic leaders want to pass within a slimmed-down version of the social spending package.”

Then, seemingly from out of nowhere, Politico reports on the Child and Dependent Care Credit. Please note that this is not the Child Tax Credit which was included in Build Back Better. The Child Tax Credit.gov states, “Thanks to the American Rescue Plan, for this year only, families can receive a Child and Dependent Care Credit worth:

• Up to $4,000 for one qualifying person (for example, a dependent who is under age 13) who needs care – up from $1,050 before 2021; or
• Up to $8,000 for two or more qualifying people who need care – up from $2,100 before 2021.

The IRS explains, “The child and dependent care credit is a tax credit that may help you pay for the care of eligible children and other dependents (qualifying persons). The credit is calculated based on your income and a percentage of expenses that you incur for the care of qualifying persons to enable you to go to work, look for work, or attend school.

Does the President’s proposed FY 2023 contain Build Back Better? No. Nevertheless, there seems to be plenty of discussion within this proposal about the need for BBB. This may be a very good sign. Moreover, Child and Dependent Care Credit may help some working families get the assistance many so desperately need.

That’s it for this week. I’d love to hear from you. Pray for peace.

Happy reading!!