‘It won’t cost anyone anything they don’t deserve’: Biden defends tax-hike funded $4T spending spree


Joe Biden said Thursday that no taxpayers will have to pay anything they don’t deserve for his $4 trillion in infrastructure spending, despite several proposals that would raise taxes on individuals and companies.

‘It doesn’t cost anybody anything and deprive anybody of anything they have earned or deserve,’ Biden said during a speech promoting his American Jobs Plan in Louisiana on Thursday where the Calcasieu River Bridge served as the backdrop.

He also assured his massive spending initiatives are inherently bipartisan, claiming: ‘I’ve never seen a Republican or Democrat road.’

Republicans, however, claim Biden’s $2.3 trillion American Jobs Plan is not focused solely on infrastructure. Instead, they say, it includes a slew of Democratic pet projects like green energy initiatives.

The president says his other $1.8 trillion bill, the American Families Plan, would be aimed at so-called ‘human infrastructure’ – like universal childcare or free community college.

Biden has proposed raising the corporate tax rate to 28 per cent from the current 21 per cent in a reversal of former President Donald Trump’s 2017 tax cuts. Although the raise wouldn’t fully restore it to the pre-Trump of 35 per cent.

During his speech Thursday, however, Biden said the corporate rate would be raised to somewhere ‘between 25 and 28’ per cent – a departure from his previous proposal of an outright 7 per cent increase. 

As part of his $4 trillion infrastructure spending spree, Biden has said he will be taxing the top 0.3 percent of American earners and has promised he won’t hike rates for anyone earning under $400,000 a year. 

President Joe Biden said Thursday that his $4 trillion spending proposals ‘doesn’t cost anybody anything and deprive anybody of anything they have earned or deserve’

He was speaking in front of the Calcasieu River Bridge in in Lake Charles, Louisiana on Thursday to promote his $2.3 trillion American Jobs Plan

He was speaking in front of the Calcasieu River Bridge in in Lake Charles, Louisiana on Thursday to promote his $2.3 trillion American Jobs Plan

Biden fist-bumps with a worker gathered for his speech on May 6

Biden fist-bumps with a worker gathered for his speech on May 6

The proposals have businesses up in arms over their competitiveness with the rest of the world, with Biden’s administration claiming it would push for a global minimum rate to keep the U.S. in the game.

Biden said passing the American Jobs Plan is a vote of conscience from lawmakers on whether they want to help the rich or working families.

He also delivered an impassioned defense of his plans Wednesday, despite backlash over proposing top income tax rates are hiked for the wealthiest filers, by claiming the measures won’t affect the lifestyles of wealthy CEOs even a ‘little tiny bit.’

Joe Biden’s tax hikes targeting the rich: Who will have to pay

President Biden has promised he will not raise taxes on anyone earning less than $400k and has instead laid out a series of hikes for the wealthiest Americans.

He has insisted they will only impact a ‘slither’ – or 0.3% – of the population. 

Capital gains tax on investment sales for those earning more than $1million a year:

Current law: 20%

Proposal: 39.6%

With an effective rate of 43.4% when the Medicare surcharge is added.

Investors currently pay 23.8% as the top capital gains rate along with the 3.8% net investment income tax, known as the Medicare surtax. 

Around 500,000 people in the US, or 0.32% of the population, have recorded a gross income of over $1million.

For those earning more than $1 million in high-tax states, the total rate will be even higher given the combined federal and state tax capital gains.

In New York it could be as high as 52.22% and for Californians it could be 56.7%

Wealthy residents pay Capital Gains on the growth in value of investments when they are sold. They are mainly placed on profitable stock trades and real estate deals. They can also apply to sales of collectible cars, art, businesses, gold.

Investors are taxed on the difference between what they paid for the asset and what they sold it for. 

Investments held for at least one year tops out at 20% and those held under a year are taxed the same as salaries and wages. An additional 3.8% tax applies to those earning at least $200,000.  

Corporate taxes

Current top rate: 21%

Proposed top rate: 28% 

Biden said he is willing to negotiate the final amount for between 25% and 28%,  

These hikes have already been proposed in the first part of his infrastructure plan. 

He is also targeting US firms’ profits overseas and companies who use offshore businesses. 

Biden has still vowed that no one earning under $400,000 a year will pay more taxes in his administration. 

‘We’re not going to deprive any of these executives of their second or third home. Travel by jet,’ Biden said in a swipe at Americans wealthiest.

‘Not going affect your standard of living at all – not a little tiny bit,’ said Biden.

The president has two homes outside the White House, his main residence in Wilmington and a beach home in the Delaware community of Rehoboth. As president, he also gets to enjoy plane travel on Air Force One for all flights – arguably better than a private jet.

Biden backed his tax hikes in his American Jobs Plan and other proposals and insisted it wouldn’t impact ‘multi-millionaires’ but will help the people he grew up with in Scranton, Pennsylvania. 

Biden referenced his decades in Congress representing Delaware – a state where man top companies are incorporated due to its beneficial tax and disclosure laws – and made the case that CEOs would still prosper even if his tax hikes go through.  

As part of his $4 trillion infrastructure spending spree, Biden has said he will be taxing the top 0.3 percent of American earners and has promised he won’t hike rates for anyone earning under $400,000 a year.

He is also raising corporate tax rates from 21 percent under Donald Trump to 28 percent. 

Around 500,000 people in the US, or 0.32 per cent of the population, have recorded a gross income of over $1 million.

For those earning more than $1 million in high-tax states, the total rate will be even higher given the combined federal and state tax capital gains. In New York it could be as high as 52.22 per cent and for Californians it could be 56.7 per cent. 

‘The average CEO of a fortune 500 companies makes like 36 times with the average employee of that corporation made. It’s over 450 times as much now. As my mother would say, who died and left them boss?’ Biden said. 

‘No seriously what rationale? Tell me, what benefit?’ he asked, alternately raising his voice, leaning into a podium, and sometimes bringing his voice down to a whisper to make a point. 

‘But I can affect the standard of living of people I grew up with – if they have a job,’ said the Scranton-born Biden. 

‘Making sure that standard of living and who I grew up with if they have childcare and can afford it, so 20 million women can be back in the workforce,’ he said.

‘This is – this makes no sense to me. But, I’m going to have to be able to explain this. And I’m going to keep banging at it.’

He told reporters who came to hear his speech about providing assistance to restaurants struggling in the pandemic that, ‘I think most of you understand what I said, whether you agree with me or not, I think you understand what I’m saying.’

‘It’s fair to say this is about making the average multimillionaire, pay just a fair share. It’s not gonna affect their standard of living a little bit. Thank you all very much.’

An August 2020 study by the Economic Policy Institute found the average CEOs of the largest firms earned 320 times what the typical worker got paid.  That was far more than they earned in the 1990s.

Louisiana Governor John Bel Edwards presented Biden with a pocket rosary when he landed at Chennault International Airport in Lake Charles, Louisiana

Louisiana Governor John Bel Edwards presented Biden with a pocket rosary when he landed at Chennault International Airport in Lake Charles, Louisiana 

Bel Edward's daughter Sarah Ellen watched as Biden put the rosary on his finger on the tarmac

Bel Edward’s daughter Sarah Ellen watched as Biden put the rosary on his finger on the tarmac

Biden’s infrastructure would raise corporate tax rates from 21 per cent, where they went in the 2017 tax cut signed by President Trump, and raise them to 28 per cent.

He wants to restore income tax rates for the top bracket to 39.6 per cent, from 37 per cent.

And he wants to nearly double capital gains rates from 20 per cent for those earning more than $1 million a year. 

Biden indicated a willingness to compromise on things like corporate tax rates when he meets with Republicans next week. Some have suggested a 25 per cent corporate tax rate. 

‘Yes, it doesn’t have to be exactly what I say … I’m willing to compromise, but I’m not willing to not pay for what we’re talking about. I’m not willing to deficit spend. [What] we already have is $2 trillion in the hole,’ referencing the costs of the 2017 tax cuts.

He said he would negotiate ‘seriously’ with Republicans. 



Source link

Related Articles

Back to top button