Joe Biden’s plan to raise revenue is a hotch-potch of unorthodox measures—the wisdom of which is debatable
It is regressive and self-defeating
.The president was unable to whip his slim congressional majorities into reversing Mr Trump’s tax law and increasing marginal rates on capital gains, corporate profits or top individual incomes. And so his plan to raise revenue is a hotch-potch of unorthodox measures, including a new minimum tax on corporate-book income, an excise tax on stock buy-backs and a new surtax on those with incomes above $10m. The wisdom of these measures can be debated. What cannot is a last-minute addition to the bill that would spend hundreds of billions of dollars subsidising the richest residents of New York and California.
TheSALT)deduction lets Americans cut their federal-tax liability if they pay lots of income and property tax at the state and local level. Before 2017 this provision was limitless, letting plutocrats in high-tax states deduct all the property tax on their mansions and the state income tax on their millions, at the expense of federal taxpayers everywhere. Mr Trump’s tax law capped the tax exemption at $10,000. Rather than welcome this as a step towards their goal of more redistribution, Democrats in high-tax states moaned that they had been punitively targeted. Just before Build Back Better passed the House of Representatives on November 19th, they raised the cap to $80,000 a year.
The result is a fiscal fiasco. In the next five years the benefit will cost $275bn. Exactly none of it will go to the bottom 60% of earners. Instead 70% of the gains will go to the top 5%. For a party that came to power condemning Mr Trump’s tax reform for being regressive, the stain of hypocrisy will be hard to wash out. headtopics.com
If the politics are bad, the policy is worse. The central promise of Mr Biden’s agenda was to craft a more muscular state that will be able to grapple with long-term threats such as climate change, pandemics and social dysfunction. Yet what is supposedly built back better will count for nothing if it does not exist. In order to pay for that $275bn giveaway, the Democrats have jettisoned some of Mr Biden’s pledges, including free tuition at community college, and scheduled others to disappear in a few years’ time. They are betting that a future Congress will be shamed into finding the money to save these from the axe. That may turn out to be wishful thinking.
It is also callous. The expanded child benefits have significantly reduced poverty among the most needy Americans, but the programme is due to expire after just one more year. If Democrats held back the hundreds of billions from theSALTdeduction, they could almost completely fund a permanent child-benefit scheme. They prefer to give each member of the top 1% of earners an average tax cut of $15,000, five times the amount the benefit pays for each child.
The best hope of improving the bill comes in the Senate, where all Democrats must vote for it to pass. Mr Biden is so desperate to see the bill into law that he will not criticise it. Some, like Bernie Sanders, have proposed a compromise limiting the larger
SALTdeduction to families making less than $400,000 a year—which tells you just how regressive the current bill is.There is no way to tweak theSALTdeduction to make it desirable. It should be scrapped entirely. But because that will not happen, the debate is whether it can be wrestled into something less bad. Given the steady degradation of Build Back Better, optimism would be unwise. headtopics.com
■Read more: The Economist »
Fiscal stimulus powers U.S. economy in 2021 to its best performance since 1984
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More hearsay, quote some facts, figure they are all made up,, who's gonna check their facts Nobody has for 5 years. So you don't like handouts to the well off when Dems do it? Or do you only support welfare for the 1%? POTUS SpeakerPelosi SenSchumer SenFeinstein . How do you respond? I won’t copy Harris because she doesn’t matter and can’t win in 2024 or beyond.
Democrats embracing trickle down economics! Political indebtedness-perpetually! Disinformation is not becoming to you. TeamPelosi SpeakerPelosi Nancy thank you!! wink wink नमस्ते भिक मंगे पिक्चर आरही हैं 10rs टिकट लिखना गुनाह हैं सब लिख के रखा हैं How else could socialism survive It’s hodge-podge Of course to you & those who OWN you TE, raising revenue for the masses will never be orthodox or right but it’s ALL RIGHT when you & your sponsors don’t pay taxes, hide profits offshore & engage in every imaginable manner of corporate thievery hnn?
Democrat Stacey Abrams announces 2nd try for Georgia governorStacey Abrams will be back on the campaign trail in a second bid for governor of Georgia next year, setting the stage for a possible rematch with GOP Gov. Brian Kemp. For all those who are new to this working from home Bitcoin trading options Here's a little tip: Get a trusted Bitcoin expert and stick to her AmelieBtc1 Invest and play at similar times each day. Because : In times of chaos, your investment is your anchor to success I hope she WINS! Can't win without cheating.
Crypto is the future, if the current administration chooses to stifle that, our collective future (and strength) are doomed shibarmy That’s because wisdom isn’t playing a role here..
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George Clooney and Matt Damon Are Still Trying to Figure It Out'Listen brother, someday you and I will sit down and figure this industry out.' GeorgeClooney and MattDamon, in conversation ⬇️