Behind the Bill to Tax US Billionaires, Joe Biden Proposes a Centrist Budget

Joe Biden outlines his fiscal year 2023 budget proposal at the White House in Washington on March 28, 2022.

There’s the information that grabs attention, that of taxing billionaires. Joe Biden reiterated his request to make the richest pay taxes by sending his budget wishes to Congress Monday, March 28, for the annual exercise that will begin in October 2022.

Technically, the measure plans to levy up to 20% tax on all income, including unrealized capital gains, from those with assets over $100 million. The measure would affect 20,000 households, or 0.01% of Americans. By never selling their group’s stock, entrepreneurs like Elon Musk or Jeff Bezos have managed to avoid paying federal taxes in a number of years. On the other hand, if they sell, taxes will rise, as Elon Musk experiences, who in 2021 will pay the highest amount ever paid by a person. “For those wondering, I will pay over $11 billion in taxes this year”had tweeted the boss of Tesla and SpaceX in late December 2021.

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This measure is the same as a proposal formalized by Congressional Democrats in the fall of 2021, but torpedoed by the centrists. In the midst of the campaign for the midterm elections in November, which will be very difficult for Democrats, the measure, which should generate $360 billion in ten years, has little chance of passing. However, it shows an increasing concern, namely the introduction of fairer taxation.

Biden bows to political reality

But the budget news is elsewhere: Joe Biden makes “tax responsibility” one of his “values” power station. This belief implies a reduction in deficits. These should fall from 12.4% of gross domestic product (GDP) in 2021, the year of the post-covid recovery plan, to 5.8% in 2022. The decline should continue into 2023, with a deficit reduced to 4.5% of the national wealth. Admittedly, the White House is assuming optimistic growth assumptions (3.8% and 2.5% in 2022 and 2023, against 2.8% and 2.2% forecast by the Federal Reserve, the US central bank), but the tone , that of Orthodoxy, is set .

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Second ” where the ” from Mr Biden, the ” security “, both in and outside. Failing to get Congress to pass his social and environmental recovery plan, Mr. Biden made significant gestures to centrist and unregistered voters. “With a budget leaning toward the center, Biden is bowing to political realities,” comment on it New York Times

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