Joe Biden abandons taxes on billionaires


“Pay your share!” : Joe Biden repeated the ban three times to billionaires on Thursday, October 28. This mantra cannot conceal the reality that has fallen into darkness: The President of the United States has indeed given up the plan to quasi-tax wealth, thereby giving up taxing billionaires. The idea is to tax the unrealized capital gains of 700 American billionaires at a tax rate of 23.8%, which would make the two richest people on the planet Elon Musk (Tesla) and Jeff Bezos (Amazon ) Paying 50 and 45 billion U.S. dollars, respectively, according to calculations by French economist Gabriel Zuckerman, over five years. Similarly, the idea of ​​increasing the corporate tax rate from 21% to 28% was also abandoned. As the Glasgow Climate Summit approaches, there is no carbon tax, but it has never been considered.

As Joe Biden promised not to punish Americans with an annual income of less than US$400,000, he announced a series of austerity measures for businesses and the wealthiest people to cash out about US$2 trillion in eight years. The challenge is to fund its social program, which has been halved to reach $1.750 billion in six to ten years.

Therefore, within the framework of the agreement of the Organization for Economic Cooperation and Development, the minimum corporate tax rate will be 15%, offshore profits will be taxed more, and high income will be taxed more than 5%. US$10 million, more than 8% of US$25, will result in a federal marginal tax of up to 45%. The most powerful means is to strengthen the tax authority, which is expected to bring in 400 billion U.S. dollars.

Biden is difficult to revolutionize

The revolution will wait. Since the Senate is flat between Democrats and Republicans, Mr. Biden can hardly make a revolution. As early as this winter, he had to give up raising the federal minimum wage to $15 an hour. After the decision was made under the leadership of George W. Bush, the price has stayed at $7.25 per hour since 2009.

In terms of expenditures, Joe Biden’s plan is basically divided into three main chapters, environment-this topic was originally in the infrastructure plan-550 billion US dollars, children and family policy 750 billion US dollars, housing and health 350 billion US dollars. “This is a messy and frustrating budgeting process. But in the end we will do reasonable work, prioritizing some of the most important areas, such as climate, children and health insurance, and providing any services to those who do not have any insurance. “, sJason Furman, a Harvard professor and former economic adviser to Barack Obama, is very happy.

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