Oh boy, we got some big numbers here, but first that this video is sponsored by the amazing programs linked down below on building your wealth with a coupon code expiring a friday at 11, 59 p.m. It is black friday. The black friday coupon code check that out link down below holy 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 found this helpful, consider sharing the video check out the programs link down below on building your wealth and folks, we'll see you next time. Quick reminder: the programs on building your wealth come with private live streams with me as well. So we can talk about my thoughts on the market.

What's going on where my head is, and you get to ask questions directly in terms of what your thoughts are, what questions you might have regarding the market through these live streams, look forward to seeing you there can't wait thanks so much for watching this video youtube. Influencer kevin paffrath. What up like and subscribe bye you.