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Friday, March 31, 2023

Biden will present the new budget and propose to increase taxes on the rich

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The president of United States, Joe Bidenwill travel to Pennsylvania on Thursday to submit a federal budget plan full of spending proposals and higher taxes for the richwhich will serve as the basis for his foreseeable candidacy for re-election in 2024.

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Biden’s proposal faces a challenge this year tough opposition in Congressafter the republicans seized control of the House of Representatives in the november legislative electionsand it is unlikely that much of it will ever be enacted.

The plan, however, is a political statement that challenges directly the threat of Republican House Speaker Kevin McCarthy of block a borrowing limit increase federal budget of $31.4 trillion unless Biden agrees to rein in federal spending.

The Chairman of the United States Federal Reserve, Jerome Powell, had asked the United States Congress to raise the ceiling on debt because, of not doing it, “the consequences will be extraordinarily adverse”.

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Speaking at a Philadelphia union hall, the democrat president will highlight plans for cut the deficit by almost 3 trillion dollars in 10 years, raising taxes on those who earn more than $400,000 a year and putting end corporate tax breaks enacted in 2017 under then-president donald trump.

A White House official contrasted Biden’s view with that of the Republicans, saying that the budget would reduce the US deficit at the same time as the costs for families.

He also proposes raising taxes on the rich and the big corporationsthe official said, and “addresses wasteful giveaways to special interests.”

Biden proposes to finance higher spending and close the deficit by imposing a 25% minimum tax on billionaires and doubling the capital gains tax from 20%, the White House official said.

Biden has also said that the budget will propose quadruple a 1% tax on share repurchaseswhile going after corporations and wealthy individuals who avoid paying taxes.

John Gimigliano, A senior tax executive at accounting firm KPMG, said Biden’s proposals had “little chance” of becoming law, but served an important political purpose.

Source: Ambito

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