Biden has to settle for half his economic and climate package and without the billionaire tax

Biden has to settle for half his economic and climate package and without the billionaire tax

Although he has had to reduce it from 3.5 trillion to 1.75 trillion, the president of the United States, Joe Biden, announced this Thursday that, after months of “tough negotiations” between the Democrats, he has “a historical economic framework” for your $ 1.75 trillion package.

“Nobody got everything he wanted, me included. But that is the commitment. That is consensus,” stressed the president. This new plan maintains the investments in climate and early childhood education that were foreseen in the initial project of 3.5 billion dollars, but abandons electoral promises such as the guarantee of a maternity and family leave paid at the national level, the extension of financial aid of $ 300 a month per child, the possibility of free college education and reduces the chances of a regularization plan for undocumented immigrants.

These remarks are made after weeks of closed-door meetings with Democratic lawmakers, especially centrist West Virginia and Arizona senators Joe Manchin and Kyrsten Sinema, respectively. The Senate is split 50-50 between the two parties, so every blue vote is essential to greenlight the ambitious plan that has no Republican support. Since they took the two houses after the 2020 elections, the Democrats have only agreed on one economic plan, the billionaire stimulus plan to recover from the effects of the pandemic.

It was critical for Biden to try to advance his social spending plan as far as possible before his trip to the G20 leaders summit in Rome this weekend, from where he will then go to the COP26 climate summit in Glasgow.

One of the strongest points of this new project is the fight against the climate crisis and, according to the New York Times, 555,000 million dollars of the budget will be invested to combat climate change, largely through tax incentives for sources of low emission energy. The tabloid also indicates that $ 400 billion will be earmarked to provide six years of universal free preschool for all 3- and 4-year-olds, as well as $ 150 billion to build one million units of affordable housing. For their part, Biden Administration officials said the measure will total about $ 1.75 trillion. However, the New York Times points out that it will add 1.85 trillion dollars.

In his press conference without question round, the president stressed that this plan is “fiscally responsible” and “is fully paid for”, but said that he will give more details when he returns from his six-day trip to Europe. The measure will be paid for in full by new taxes and will reduce the deficit by generating about $ 2 trillion in revenue through a series of changes to the tax system. Biden stressed that taxes will not be raised on anyone who earns less than $ 400,000, one of his electoral promises.

If the president succeeds in passing this proposal, as well as his $ 550 billion infrastructure plan, Congress will have approved a $ 5 trillion spending in the 10 months since his inauguration, a historic domestic expense.

However, his plan for the richest to pay a new tax to finance these expenses did not go through. The chairman of the Senate Finance Committee, Democrat Ron Wyden, announced that the change to the 107-page tax code that he drafted would affect those with wealth greater than $ 1 billion or income greater than $ 100 million by anus. As well as a new 15% tax for higher income corporations.

Amazon founder Jeff Bezos and Tesla and SpaceX CEO Elon Musk are among the 700 Americans who would have to pay more taxes if the so-called “income tax for billionaires” came into force. These new taxes would be the key to raising hundreds of millions of dollars to subsidize Biden’s plan, but they would also allow him to keep his electoral promise not to raise taxes on those who earn less than $ 400,000 a year.

“Americans who charge more can afford to pay a little more to be able to make historic investments in our workers, our economy and our competitiveness,” White House spokeswoman Jen Psaki said Wednesday.

One of the novelties of this text is that investors would have to declare their shares on the Stock Market. Until now, it is not necessary to declare to the treasury the gains obtained by investments until the shares are sold. The stock market has become even more elitist with the pandemic: According to the Federal Reserve, the richest 10% of Americans now own 89% of all US stocks. The measure will have to wait.


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