Biden: the case for tax reform

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Republicans and some Democrats object to some key elements of the plan.

US President Joe Biden on Wednesday made arguments in support of his infrastructure plan worth more than $ 2 trillion and the tax increase that is proposed to compensate for these costs.

In his speech, the president stressed the scale of the economic hardships experienced by American families during the pandemic, noting that the economic turmoil has particularly affected the situation of the non-white population of the country.

Biden criticized the approaches developed in the recent past of the United States, noting that “we have stopped investing in our future.”

Touching upon the international aspect of the problem, the President recalled the competitors of the United States, in particular, China.

Referring to his earlier proposal to raise the corporate tax to 28 percent, Biden stressed the need for a balanced approach to this issue.

According to the president, he is ready to listen to proposals for a lower than 28% increase in the corporation tax.

Biden also stressed that most Americans support the tax reform and pointed to the need for cooperation between Democrats, Republicans, and independents in solving the problem.

Republicans and even some Democrats object to some key elements of the plan that the president announced a week ago. For the initiative to be implemented, it must be approved by Congress.

Biden’s plan is designed for eight years. It includes large-scale investments in the construction of roads and bridges, the conversion of homes, the expansion of broadband Internet access, care for the elderly, domestic production development, and the construction of high-speed railways.

To a large extent, these costs are planned to be financed by raising the corporate tax to 28 percent. As part of the tax reform carried out by former President Donald Trump in 2017, the rate was reduced to 21 percent.

On Wednesday, the Treasury Department released details of the tax elements of the proposal, including plans to tighten audits. According to the agency, this will raise about $ 2.5 trillion over 15 years.

“The world’s largest companies, including Amazon, use various loopholes to avoid paying a single cent of federal income tax,” Biden said in introducing his plan. – I don’t want to punish them, but it’s wrong.”

Amazon CEO Jeff Bezos said Tuesday that he supports raising the corporate tax rate as part of a plan to modernize infrastructure but did not support the full range of proposals provided for in the Biden plan.

The business lobby and Republicans sharply criticize the initiative. The US Chamber of Commerce warned last month that tax hikes would “slow the economic recovery and make the US less competitive in the world.”

Author: Steve Cowan
Graduated From Princeton University. He has been at the Free Press since October 2014. Previously worked as a regional entertainment editor.
Function: Chief-Editor