President Joe Biden will travel to Ohio on Wednesday to give a speech on the economy, and is expected to announce a rule that will protect millions of employees in multi-employer retirement plans who have faced significant cuts to their benefits, FOX Business has said. learned.
The president is expected to be joined by Secretary of Labor Marty Walsh, Senator Sherrod Brown, D-Ohio, ARP Coordinator Gene Sperling and Cleveland Mayor Justin Bibb. Democratic delegates Shontel Brown and Marcy Kaptur are also expected to attend the president’s address.
As part of his comments, Biden will announce the new rule, which is final as part of the American Rescue Plan’s Special Financial Assistance Program.
A White House official warned that more than 200 multi-employer plans would face insolvent in the near term as their investments struggled during the economic crisis — which the official said would result in two to three million workers losing their pension funds. would see their pension being reduced.
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The same official said that because of the Biden administration’s US bailout, any pension plan at risk of insolvency will now remain solvent until at least 2051.
“The president is bolstering families’ retirement savings as Republican members of Congress — led by Senator Rick Scott — want to threaten them by putting Social Security on the chopping block every five years,” the official said.
In previous speeches on the economy, Biden and White House officials have repeatedly criticized Scott, R-Fla., for his “11-Point Plan to Save America,” which proposed raising income taxes on Americans.
“All Americans should pay some income tax to have skin in the game, even if it’s just a small amount,” Scott wrote in the plan earlier this year. “Currently, more than half of Americans pay no income tax.
Since its release in the spring, Scott’s plan has drawn strong criticism from Democrats and opposition from some Republicans.
Senate Leader Mitch McConnell, R-Ky., closed down Scott’s proposal, saying Republicans “will not have as part of our agenda a bill that raises taxes on half the American people and increases Social Security and Medicare within five years.” year off.”
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In addition, a leading Republican source told Fox News that “income tax increases are never part of the discussion when Republicans are in charge in Washington.”
Scott updated his plan to become the “12 Point Plan to Rescue America”. Scott’s website now states that his plan “reduces taxes.”
“Nothing in this plan has ever, or ever will, advocate or propose tax hikes,” Scott’s website says, noting that it would “require a supermajority to raise taxes or benefits for the American people.”
Biden’s comments in Ohio come as the country grapples with an inflation rate of 8.6% – the highest level in more than 40 years.
Labor Department figures last month revealed the highest inflation rate since December 1981.
The Labor Department last month, when reporting May inflation data, said price increases were widespread: energy prices rose 3.9% in May from the previous month and are 34.6% higher than last year. Gasoline costs on average 48.7% more than a year ago and 7.8% more than in April. Overall, fuel prices rose 16.9% month-on-month in May, pushing the one-year increase to a staggering 106.7%.
Another worrying sign is that the cost of shelter – which makes up about a third of the CPI – accelerated in May, rising 0.6%. It was the fastest gain in one month since 2004. On an annual basis, the cost of lodging rose 5.5%, the fastest since February 1991.
Food prices also rose 10.1% over the year and 1.2% over the month, with the largest increases in dairy and related products (2.9%, the largest monthly increase since July 2007 ), non-alcoholic drinks (1.7%) cereals and bakery products (1.5%) and meat, poultry, fish and eggs (1.1%).
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Scorching hot inflation has put severe financial pressure on most American households, who are forced to pay for more daily necessities, such as food, gasoline and rent. The burden is disproportionately borne by low-income Americans, whose already stretched paychecks are heavily impacted by price fluctuations.
Biden, however, has said tackling inflation is his “top economic priority.”
The Ministry of Labor will release inflation figures for June on Friday.