Budget plans announced: now Biden wants to grab the wallets of the rich and corporations

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US President Joe Biden (81) is pushing for tax increases for large companies and the super-rich in the United States. His administration’s draft budget for the coming fiscal year, which the White House said will be released Monday, includes a 25 percent minimum tax on people with wealth of more than $100 million, as well as tax cuts. for lower and middle income groups. The US federal deficit must be reduced by about three trillion dollars (about 2.6 trillion francs) over ten years.

Biden had already announced his budget plans during his State of the Union address on Thursday (local time). However, it is considered impossible that the Democrat’s design will be implemented in this form in the near future.

Congress has the power

The release of the draft budget is just a start, as the power to approve the budget lies with the US Congress. There, Biden’s Democrats have a narrow majority in the Senate, but the Republicans have a narrow majority in the House of Representatives. Biden’s plans have not been implemented anywhere near the current budget year until the end of September – a required 25 percent minimum tax on the super-rich has already failed once.

Recently, there were only short-term solutions in Congress. There has not yet been a full agreement for this financial year. After an agreement was reached last week on the financing of part of government activities until the new budget year, the deadline for a new legislative package expires on March 22. This means that the outstanding financing from various federal governments for this financial year must be clarified. If no agreement is reached, there is a risk of a so-called shutdown, i.e. the cessation of affected government activities. However, this political bickering over the budget is not unusual in the US.

Transitional budget probably

It’s not uncommon for Congress to first settle for approving an interim budget, then a few months later to argue again over the financing of government operations. Agreements are often only reached at the very last minute. It can be assumed that this will also be the case for the coming financial year. Shortly before Biden’s State of the Union address, the Republican-led Budget Committee in the House of Representatives already adopted a counterproposal for the coming year.

To implement his plans, Biden would first have to win the presidential election. The majority in Congress should also shift in favor of his Democratic Party. This November, the US won’t just be voting on who will enter the White House. This also concerns all seats in the House of Representatives and a third of the seats in the Senate.

After ex-president Donald Trump (77) defeated all serious competitors in the Republican primaries, nothing stands in the way of a repeat of the 2020 duel: Biden against Trump. Research shows that it will be a neck-and-neck race. (SDA)

Source: Blick