Joe Biden set up a fight against Republicans, Wall Street, and Silicon Valley by proposing a major tax assault on wealthy Americans to fund a trillion-dollar spending program. To commemorate his first 100 days inauguration.
The President of the United States was expected to use his first speech at a joint session of the United States on Wednesday night to detail plans for a controversial increase. Capital gains tax, Corporate tax And income tax.
Republicans call the plan “economic obstruction,” but said corporate figures threatened to “kill the golden geese in the United States.”
Biden will celebrate his 100th day in office on Thursday. On the eve of his speech, he sets up his $ 1.8 trillion “American Family Planning” to offer national childcare, paid family vacations, and free community colleges.
It has already passed the $ 1.9 trillion coronavirus bailout package, in addition to the $ 2.3 trillion infrastructure bill he proposed.
His level of spending has led to a comparison between President Franklin D. Roosevelt and the New Deal in the 1930s.
Part of the family planning is paid by tax increases on profits from stocks and other investments such as real estate owned by Americans who earn more than $ 1 million a year.
According to the Tax Foundation, an independent research group, the tax rate on these investments has nearly doubled to 43.4%, which could be the highest since the 1920s.
The White House said the move would affect only 500,000 people, or about 0.3 percent of taxpayers.
Brian Deese, head of the White House National Economic Council, said:
“I believe it is not only fair, but also helps to invest directly in children and families.”
Mr. Biden’s infrastructure plan is set to be partially funded by raising corporate tax from 21 percent to 28 percent.
He also plans to raise the maximum income tax rate from 37 percent to 39.6 percent for those who earn more than $ 400,000.
In addition, the president will crack down on tax loopholes for the property of wealthy families.
He has announced a huge investment in the Internal Revenue Service, increasing his budget by up to $ 80 billion over a decade.
This allows you to audit the taxes of wealthy individuals and generate hundreds of billions of dollars in revenue.
In 2017, Donald Trump cut various taxes.
Republicans and business leaders have opposed any increase, saying Biden’s proposed capital gains tax hike could discourage private investment.
Kevin Brady, a key Republican member of the Property Tax Commission, said:
“As a result, growth will slow down … not only for our economic recovery, but also for future growth.”
Former Republican presidential candidate Chris Christie said he has shown that Biden is a “far-left president.” “It’s nothing more than a redistribution of income. It’s socialism,” he said.
Mr Biden faces potential opposition from moderate Democrats in the Senate, where the majority of the party is at Knife Edge.
West Virginia Conservative Democratic Senator Joe Manchin has already opposed raising corporate taxes to 28% to pay for new infrastructure.
Meanwhile, left-wing Democrats, including Senator Bernie Sanders, demanded a corporate tax of 35 percent.
Biden will also raise the minimum wage for hundreds of thousands of federal contractors, including cleaner, maintenance and cafeteria workers, from $ 10.95 to $ 15 per hour.
According to a Reuters / Ipsos poll, 55% of Americans endorse Biden’s performance for the first 100 days.
This included 65% approval for dealing with a pandemic and 42% approval. How he dealt with the Mexican border..