Friday, April 16

Who would Biden raise taxes on with his new economic project

Although the president’s economic project on infrastructure and jobs Joe Biden has caused expectations and faces two challenges: approval in Congress and convincing about the need for a tax increase for the richest, as well as a higher corporate rate.

Republicans have advanced their opposition to $ 2.25 billion dollar project, but they are not alone, since business organizations will begin their lobbying (the so-called ‘lobbying’) in Congress to stop the president’s plans, focused on renovating the transportation infrastructure (roads, trains and maritime), housing and improvement of services.

The direct tax on families is for those households that earn more than $ 400,000 annually.. On Wednesday that he presented his project, the president cut off those who criticize the rise and assure that it will impact those who earn less than that amount or as a “punishment.”

“This is not a punishment for those who make that income. It is not to seek reprisals … It is about opening opportunities for everyone else, ”said the president. “No one, let me say it again, no one making less than $ 400,000 will see their federal taxes go up, period.”.

Based on data from the Census Bureau, the portal DQYDJ (Don’t Quit Your Day Job) estimó que Median US Household Income is $ 97,973 in 2020, which increased compared to 2019, when it was $ 89,930.

Only 1% of the population earns more than $ 500,000 annually, it was indicated.

Some argue that the middle class will be affected, but that category encompasses households with incomes of $ 34,200 to $ 136,800. Hispanics have a median household income above $ 51,000..

Specifically, out of every 100 households, only two would see a tax increase, because their income is greater than $ 400,000 a year.

The confusion and controversy arises because the tax will be applied by people, but considering family income, that is, if a couple earn $ 200,000 annually, the rate hike applies there, explained the White House spokeswoman, Jen Psaki.

President Biden has acknowledged the difficulty of convincing Republicans of the increase, but the details of the plan will need to be clarified.

“You may not get [el apoyo republicano], but I’ll get the Democratic votes for a tax increase. “, he claimed.

And the companies?

On the business rate, the controversy also advances. According to a report by The Hill, several business organizations are preparing to stop the increase, which would basically be to return to what the former president Donald Trump reduced them.

Biden’s plan would increase the corporate tax rate to 28 percent, in addition to establishing a minimum global tax. The 2017 reform lowered the corporate tax rate from 35 percent to 21 percent.

Entrepreneurs send a double talk to the government, as they push for more infrastructure, but do not want to see their income affected.

“We will be lobbying Congress on both aspects of the plan: infrastructure and taxes.”, said to The Hill a spokesperson for the Retail Industry Leaders Association. “We want to find a way forward that does not include an increase in the corporate tax rate.”

Other groups, such as the United States Chamber of Commerce, are also preparing for lobbying.

The Economist Andres Vinelli, Vice President of Economic Policies of the Center for American Progress (CAP), acknowledged that there would be a reluctance of Republicans in Congress, but questioned “if their antipathy” is greater “to the empathy of infrastructure plans.”

“(The plan) is to reimpose taxes on people, as they were before … basically people who are rich, who are at maximum income”, defended.

He added that large companies have complained a lot about the infrastructure, but also questioned whether their complaints will be greater about the tax increase than about the need to implement the plan, which will help reactivate the economy and create well-paying jobs.

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