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Joe Biden is taking his case for transforming the role of government directly to the American people.

On his 99th day in office, the president will address a joint session of Congress, laying out his plan to expand educational opportunities and child care for families, funded in part by the largest tax increases on the wealthy in decades.

Called the American Families Plan, Biden's third major legislative proposal combines $1 trillion in spending with $800 billion in tax cuts and credits for middle- and lower-income families.

It follows a $2.25 trillion infrastructure plan that has yet to be taken up by Congress and a $1.9 trillion pandemic relief package that Biden has signed into law.

Taken together, the measures, totaling almost $6 trillion, represent an inflection point. Then-president Ronald Reagan set out a policy four decades ago of lowering taxes and shrinking government spending to spur private investment, a philosophy that culminated in Donald Trump's 2017 tax cuts. Now, Biden is embracing big government.

Click here for a breakdown of what's in Biden's plan and here for more on how it would alter capital gains taxes.

Republicans say Biden has talked about wanting bipartisan support for his proposals but has done little to bring them on board, while the White House contends it's open to Republican input. In the end, Democrats may opt for a path that allows passage of elements of Biden's plan without Republican backing.

The speech will be the most high-profile indoor event at the Capitol since the Jan. 6 insurrection. Not all members of Congress will be there, given Covid-19 and security protocols, but the main target anyway is elsewhere.

For now, Biden's focused on shaping public opinion in support of his new vision for America. Kathleen Hunter

Biden greets a child during a campaign event in Iowa in February 2020.

Photographer: Daniel Acker/Bloomberg

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Global headlines

'Like a war' | At his crowded emergency room in central Delhi, Ali Raza can't focus on when the next delivery of oxygen will arrive — 12 of his 20 doctors have Covid-19, and patients keep coming. As Ruth Pollard and Sudhi Ranjan Sen explain, it's a glimpse of the desperate situation unfolding in India, where the world's fastest-growing virus surge threatens to spawn new variants and slow the pandemic recovery.

  • For months, developed economies have held onto vaccines and the raw materials to make them. Now India's outbreak is forcing them to act.

Softer tone | Saudi Crown Prince Mohammed Bin Salman showed a lighter touch in comments on regional rival Iran, saying he hopes the countries can resolve their differences and "have a good and positive relationship." In a rare interview on a Saudi television channel last night, the de-facto ruler also said the kingdom is in agreement with the Biden administration about 90% of the time.

Tit for tat | Tensions between Asia's biggest economic powers heightened this week as Japan described China as an international security threat in its so-called diplomatic Blue Book and Beijing taunted Japan over its handling of the Fukushima nuclear disaster. Friction has worsened in recent months as Tokyo joined the U.S. and Europe in criticizing China over its crackdown in Hong Kong and alleged human rights abuses in the Xinjiang region.

Non-stick scandals | Boris Johnson may be mired in allegations of sleaze and cronyism in his government, yet members of his Conservative Party say U.K. voters aren't that fussed about it ahead of key local elections next week. With the party generally enjoying a double-digit lead in national polls, there's no backlash for now over the claims, according to lawmakers interviewed by Bloomberg.

  • The European Parliament ratified the post-Brexit trade accord with the U.K., the final step in the divorce that ends four years of political brinkmanship.

Vaccine reluctance | Many Russians are refusing to be vaccinated against Covid-19 even as President Vladimir Putin exhorts them to take one of three homegrown shots amid evidence the country faces a third wave of infections. Longstanding mistrust of the authorities and months of upbeat government assessments that the virus is under control have depressed demand for inoculations, Evgenia Pismennaya and Jake Rudnitsky report.

  • Russia protested a move by Brazil to block imports of Sputnik V, citing a "lack of consistent and reliable data" on the shot's safety.
  • Japan is one of the worst performers in the race to vaccinate, putting the July Summer Olympics at risk

Signage points to a vaccination center inside the Afimall City shopping center in Moscow on Jan. 20.

Photographer: Andrey Rudakov/Bloomberg

What to Watch

  • The European Commission is seeking powers to levy fines or block deals by foreign state-owned companies, a thinly veiled response to the economic clout of China.

  • Argentina's Patagonia shale fields face a fourth week of blockades as health workers demand pay hikes to keep pace with one of the highest inflation rates in the world.

  • Brazil's Senate opened a probe into the government's response to the pandemic, as President Jair Bolsonaro's opponents seek to expose a key vulnerability ahead of his 2022 re-election bid.
  • Somalia's president said he's ready to hold elections after a plan to extend his mandate without a vote drew international condemnation and stoked violence in the Horn of Africa nation.

And finally ... Airlines have imposed Covid-era changes to cut the risk of contagion, but one measure — boarding passengers seated at the back of the plane first — actually increases the chance of catching the virus, according to a study published in the Royal Society Open Science journal. Back-to-front boarding is also twice as risky as letting passengers on at random because of closer contact as they stow their luggage, the study said.

Cabin crew check seating ahead of a flight operated by Wizz Air in Budapest, Hungary, on May 25, 2020.

Photographer: Akos Stiller/Bloomberg



 

 

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