The US President had to consent to halving his plan for social and environmental measures to hope to see it adopted by the Congress. A compromise that buries the tax project on big fortunes.
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“Pay your fair share!”: Joe Biden has repeated three times this injunction, Thursday, October 28, to billionaires. This incantation can not hide the reality fell in the night: the President of the United States has redeemed to tax billionaires by abandoning the project of quasi-tax on fortune. The idea was to impose the unrealized capital gains from the US 700 billionaires at a rate of 23.8%, which would have led the two richest men on the planet, Elon Musk (Tesla) and Jeff Bezos (Amazon) to pay 50 and $ 45 billion over five years, depending on the calculations of the French economist Gabriel Zucman. Similarly, the idea of seeing the corporate tax rate from 21% to 28% has been abandoned. There is no carbon tax, at the approach of the Glasgow summit on the climate but it has never been considered.
Like Joe Biden is committed not to penalize Americans winning less than $ 400,000 a year, he announced a series of screw kernels on businesses and the richest to cash some $ 2,000 billion on eight years. The challenge being to finance its social plan, the amount of which was divided by two, to $ 1,750 billion over six to ten years.
Thus, the minimum tax rate of companies will be 15%, the off-shore profits will be more taxed, within the framework of the Agreements of the Organization for Economic Cooperation and Development, while the high income will have a Surcharge, 5% above $ 10 million, from 8% beyond 25, resulting in maximum federal marginal taxation of 45%. The most powerful instrument is the strengthening of the means of the tax, supposed to report $ 400 billion.
Biden can not make a revolution
The revolutions will wait. With a parity Senate between Democrats and Republicans, Mr. Biden can hardly make revolution. Already this winter, he had to give up increase the federal minimum wage at $ 15 per hour. It remains blocked at $ 7.25 of the hour since 2009, following a decision taken under George W. Bush.
On the expense side, Joe Biden’s plan is mainly divided into three major chapters, the environment – this topic was initially in the Infrastructure Plan – for $ 550 billion, the child and family policy for 750 billion, Housing and health for 350 billion. “This has been a messy and frustrating budget process. But we lead to a reasonable job that gives priority to some of the most important areas such as climate, childhood and health coverage for those who do not have it”, s Rejoiced Jason Furman, a professor at Harvard and former budget adviser from Barack Obama.
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