Biden’s office will mark its first 100 days in office by proposing a massive tax campaign on America’s rich to fund multi-trillion-dollar spending programs by battling Republicans on Wall Street and Silicon Valley.
The US president was expected to use his first speech to Congress on Wednesday night to detail his plans for a controversial increase in capital gains tax, corporate tax and income tax.
Republicans called the plans “economic sabotage,” while businessmen said they threatened to “kill the golden goose, which is America.”
Mr Biden will arrive on Thursday for 100 days in office. In his talk last night, he will present his $ 1.8 trillion American Family Plan for National Child Care, Paid Family Vacation, and Community Free College.
That comes at the height of his $ 2.3 trillion infrastructure bill, his already $ 1.9 trillion coronavirus aid package.
His spending level is comparable to that of President Franklin D. Roosevelt New New Deal of the 1930s.
The family plan will be paid in part, as will other tax-added investments, such as American-owned property, which earns more than $ 1 million a year.
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Some could see their tax rate on those investments almost doubling to 43.4 percent, the highest since the 1920s, according to the Independent Tax Research Group.
The White House said the move would affect only 500,000 people, or about 0.3 percent of taxpayers.
The head of the White House National Economic Council, Brian Dees, said: “It’s not the best one percent, not even the first half of one percent.
“We believe that not only is this fair, but it will also help to invest directly in our children and our families.”
Mr. Biden’s infrastructure program will be partially funded, raising the corporate tax rate from 21 percent to 28 percent.
He also plans to raise the high income tax rate from 37% to 39.6% for those earning more than $ 400,000.
In addition, the President plans to eliminate tax loopholes for the estates of wealthy families.
He will announce huge investments in the Internal Revenue Service, increasing its budget to $ 80 billion over 10 years.
This will allow him to control the taxes of wealthy individuals, raising hundreds of billions of dollars in revenue.
In 2017, Donald Trump reduced various taxes.
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Republicans and business leaders have spoken out against any increase, saying Biden’s increase in capital gains tax could hamper private investment.
Congressman Kevin Brady, a leading Republican on the U.S. House of Representatives’ tax committee, said: “This is another serious economic mistake made by the Biden administration.
“The result will be slow growth … sabotaging not only our economic recovery but our future growth.”
Former Republican presidential candidate Chris Christine said it showed Biden was an “extreme left-wing president.” He said. “It’s nothing but redistribution of income. That’s socialism. “
Mr Biden is facing possible opposition from moderate Democrats in the Senate, where the majority of the party is on the verge of collapse.
Conservative Democrat Sen. Manchin of West Virginia is already opposed to raising the corporate tax rate to 28 percent to pay for new infrastructure.
Meanwhile, left-wing Democrats, including Sen. Bernie Sanders, demanded a 35 percent corporate tax.
Mr Biden also plans to raise the minimum wage for hundreds of thousands of federal contractors, including cleaners, maintenance workers and cafe workers, from $ 10.95 to $ 15 an hour.
According to a Reuters / Ipsos poll, 55% of Americans approve of Mr. Biden’s speeches during his first 100 days.
It contained 65% approval for dealing with the epidemic and% 42% for how it handled the Mexican border.