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Biden says wealthy and businesses should pay their ‘fair share’ as he sells his $4t plans


President Joe Biden on Monday told America’s wealthy and corporations that it is time to start paying their ‘fair share’ in taxes in speech pushing his ambitious infrastructure and social spending sprees.

‘Is it more important to shield millionaires from paying their fair share, or is it more important that every child gets a real opportunity to succeed from an early age and ease the burden on working families,’ the president said during a visit to Tidewater Community College in Portsmouth, Virginia. 

Biden, along with Jill Biden, were in the southern part of Virginia, as the Biden administration starts a blitzkrieg to sell its $4.1 trillion in federal spending package amid negotiations with Republicans.

Monday’s focus was on education. Their first stop was at Yorktown Elementary School where the first couple heard from fifth graders about what it was like having school at home. The Bidens then visited the community college. As part of his American Families Plan, Biden wants to offer two years free community college tuition to all Americans.

Both his $2.3 trillion American Jobs Plan and his $1.8 trillion American Families Plan feature heavy education components – everything from money to fix school buildings and replace old pipes to funds for free universal pre-K and more teachers. 

The president plans to pay for his jobs plan with a hike on corporate tax rates from 21 percent to 28 percent and impose a global minimum tax on corporations. To pay for his families plan, he would hike the tax rate on capital gains to 39.6 percent and raise the rate for the top one 1 percent of income earners to 38.6 percent. 

Republicans countered that the rise in corporate taxes would send companies and jobs overseas. They say the families plan – which includes a massive amount of social programs for education, paid family and medical leave and extended tax cuts for low-and- middle income workers – is a non-starter.

GOP House Minority Leader Mitch McConnell said on Monday that none of the Senators in his party would back Biden’s plans, vowed to fight the reversal of Trump’s 2017 tax hikes and the costs to be slimmed down to $600billion. 

Biden defended his approach, saying he’s asking for people and companies to pay their share. 

‘It doesn’t add a single penny to our deficit, it’s paid for by making sure corporate America and the wealthiest 1%,’ he said of his proposals. ‘Just pay their fair share. I come from the corporate capital of the world. More corporations are incorporated in the state of Delaware, and all the rest of the nation combined. And I’m not anti corporate, but it’s about time they start paying their fair share.’

President Joe Biden argued he isn’t raising taxes to pay for his ambitious $2.1 trillion plans on infrastructure and social programs but asking corporations and the wealthy to 'pay their fair share'

President Joe Biden argued he isn’t raising taxes to pay for his ambitious $2.1 trillion plans on infrastructure and social programs but asking corporations and the wealthy to ‘pay their fair share’

First lady Jill Biden applauds President Joe Biden after his remarks

First lady Jill Biden applauds President Joe Biden after his remarks

President Joe Biden and first lady Jill Biden, tour an HVAC workshop at Tidewater Community College, in Portsmouth, Va.

President Joe Biden and first lady Jill Biden, tour an HVAC workshop at Tidewater Community College, in Portsmouth, Va.

First lady Jill Biden, a fulltime teacher, helped President Biden sell the education component of his jobs and families plans

First lady Jill Biden, a fulltime teacher, helped President Biden sell the education component of his jobs and families plans

Joe Biden’s tax hikes targeting the rich: Who will have to pay

Capital gains tax on investment sales for those earning more than $1million a year:

Current law: 20%

Proposal: 39.6%

With an effective rate of 43.4% when the Medicare surcharge is added.

Investors currently pay 23.8% as the top capital gains rate along with the 3.8% net investment income tax, known as the Medicare surtax. 

Around 500,000 people in the US, or 0.32% of the population, have recorded a gross income of over $1million.

For those earning more than $1 million in high-tax states, the total rate will be even higher given the combined federal and state tax capital gains.

In New York it could be as high as 52.22% and for Californians it could be 56.7%

Wealthy residents pay Capital Gains on the growth in value of investments when they are sold. They are mainly placed on profitable stock trades and real estate deals. They can also apply to sales of collectible cars, art, businesses, gold.

Investors are taxed on the difference between what they paid for the asset and what they sold it for. 

Investments held for at least one year tops out at 20% and those held under a year are taxed the same as salaries and wages. An additional 3.8% tax applies to those earning at least $200,000.

The US rate ranks in the middle of countries around the world. 

Investors generally support lower capital gains tax because they say it rewards entrepreneurship and encourages people to sell what they own. 

Corporate taxes

Current top rate: 21%

Proposed top rate: 28% 

These hikes have already been proposed in the first part of his infrastructure plan. 

He is also targeting US firms’ profits overseas and companies who use offshore businesses. 

Biden has still vowed that no one earning under $400,000 a year will pay more taxes in his administration. 

In his remarks, Biden pointed out the amount of people hurt by the coronavirus pandemic, including a disproportionate number of women. 

He also argued Republican voters, along with some mayors and governors, support his approach. He needs at least 10 Republican senators to support his proposals to move them through the Senate.

‘This will grow the economy,’ he said. ‘I think there’s overwhelming bipartisan support for this. If you look at the polling data, Republican voters overwhelmingly support it. Now I just got to get some of my Republican colleagues to support.’

But Senate Republican Leader Mitch McConnell said on Monday that none of his Republicans would support either Biden’s jobs plan nor his families proposal.

‘I think I can pretty safely say none of my Republican colleagues are going to support a $4.1 trillion infrastructure package, only part of which is for infrastructure,’ McConnell said. 

As part of their tour, the Bidens visited a classroom that taught HVAC repair where they watched a demonstration and chatted with students.

Earlier Monday, the first couple visited an elementary school where a group of fifth graders gave them their honest assessment of what it was like learning from home, sharing how they didn’t like it but at least could sneak in naps. 

The kids at Yorktown Elementary School are back in the classroom four days a week (Wednesday is for cleaning) and sat at desks with plastic shields around the them. Everyone wore face masks. 

President Biden reminded the kids that the first lady teaches full time and asked them how they liked learning from home.   

‘It was a little difficult with all the glitches,’ one girl said. ‘I definitely prefer it this way though.’

One boy chimed in: ‘I didn’t like virtual. It was terrible.’

Another student pointed out when their teacher Mrs. Bertamini was helping someone else ‘you could eat.’

And another noted: ‘If we were really tired we could take a little nap.’

Jill Biden, who teaches at a Northern Virginia Community College, laughed and said her students do the same.  

‘You just turn off the camera. I’ve seen that,’ the first lady said.

Republicans have criticized Biden for not opening schools soon enough but none of them voted for the $1.9 trillion COVID relief bill that contained money to help schools reopen – extra cleaning, supplies, and more staff and teachers. Biden has said he wants schools to reopen safely. 

The president also asked the kids what they wanted to be when the grew up and got a variety of answers: a fashion designer, a chef, a hair stylist.

The students were working on a project where they were designing structures in case they were shipwrecked. The school has a lot of children of military members as Naval Weapons Station Yorktown is nearby.

Some of the less optimistic students were planning where to bury their teacher should their shelter fail. 

‘In case I fail, I’m going to bury my teacher right here,’ one student said.

‘I think your teacher can handle it,’ Jill Biden noted.

‘That’s pretty cool,’ the president said.

En route there, the Bidens stopped the presidential motorcade in front of the local high school, where they greeted a group of students and staff, including a group of Navy ROTC.

The two plans Biden is pitching includes $1 trillion in spending on education and childcare over 10 years and $800 billion in tax credits aimed at middle- and low-income families.  It also includes a proposal for universal pre-K, two year college tuition and more money for teachers. 

The first couple, who wore face masks as they left the White House, are kicking off a weeklong push by the Biden administration to sell its massive social welfare and infrastructure plans.

The first lady heads out West on Wednesday to visit Utah, Nevada and Colorado. Vice President Kamala Harris will be in Milwaukee on Tuesday and in Providence, R.I., on Wednesday. Doug Emhoff will visit the Lehigh Valley on a Wednesday. President Biden visits Connecticut on Wednesday and New Orleans on Thursday. 

 

President Joe Biden and first lady Jill Biden were welcomed to a fifth grade classroom at Yorktown Elementary School on Monday

President Joe Biden and first lady Jill Biden were welcomed to a fifth grade classroom at Yorktown Elementary School on Monday

After their school stop and on their way to the next location, President Biden stopped the motorcade at Yorktown High School to greet well wishers

After their school stop and on their way to the next location, President Biden stopped the motorcade at Yorktown High School to greet well wishers

President Biden posed for a photo with the little boy

President Biden posed for a photo with the little boy

President Joe Biden and first lady Jill Biden examined the structures student built to show what they would do in case of a shipwreck

President Joe Biden and first lady Jill Biden examined the structures student built to show what they would do in case of a shipwreck

President Biden also asked the kids what they wanted to be when they grew up

President Biden also asked the kids what they wanted to be when they grew up

One less optimistic student was planning where to bury his teacher if his structure failed

One less optimistic student was planning where to bury his teacher if his structure failed

President Joe Biden and first lady Jill Biden headed to Yorktown, Virginia, on Monday as his administration starts a blitzkrieg to sell its $4.1 trillion in federal spending package

President Joe Biden and first lady Jill Biden headed to Yorktown, Virginia, on Monday as his administration starts a blitzkrieg to sell its $4.1 trillion in federal spending package

The Bidens will visit two schools - Yorktown Elementary School and Tidewater Community College

The Bidens will visit two schools – Yorktown Elementary School and Tidewater Community College

Polls show conflicted feelings over Biden’s $2.3 trillion jobs package – a massive infrastructure bill that Republicans have criticized for containing items other than tradition infrastructure, such as housing for the elderly and a Climate Corp. 

An April Ipsos Poll found that only 45% supported the plan but many elements in the proposal had strong support, such as the repair or replacement of American ports, railways, bridges, and highways (79%) and investing in home-based care for the elderly or disabled (78%). 

Biden plans to pay for his ambitious jobs agenda with a hike in corporate taxes.

He’ll also be pitching his second proposal, a $1.8 trillion families plan he laid out in his speech to Congress last week. Called a ‘human infrastructure’ bill, it focuses on social programs such as education and health care and is funded through a tax hike on the wealthy.

Many of the items – the expanded Child Tax Credit, expanded paid family and medical leave, free tuition and universal pre-K – poll well with voters. 

The president has pushed for schools to reopen safely and included money for that in his COVID rescue package that Congress passed in March.

‘He does believe that schools should be able to reopen in September, and reopen safely, following the CDC guidelines,’ White House senior adviser Anita Dunn said Sunday on CNN’s State of the Union.

But, she noted, it’s an ‘unpredictable virus’ and ‘we can’t look in a crystal ball and say what September looks like.’

Republicans are balking at the cost of Biden’s proposals and the expanded role in government the programs would bring. 

They’ve countered Biden’s infrastructure plan with a smaller proposal of their own that focuses on tradition items and have called the president’s families plan a nonstarter.

Later this week, Jill Biden will head to the West Coast and Joe Biden goes to New Orleans

Later this week, Jill Biden will head to the West Coast and Joe Biden goes to New Orleans

Jill Biden's face mask had pearl details on its bands, which matched her pearl bracelet

Jill Biden’s face mask had pearl details on its bands, which matched her pearl bracelet

President Biden gave Virginia Gov. Ralph Northam an elbow bump when he and first lady Jill were greeted by Northam and wife Pamela Northam upon their arrival in Newport News, Va.

President Biden gave Virginia Gov. Ralph Northam an elbow bump when he and first lady Jill were greeted by Northam and wife Pamela Northam upon their arrival in Newport News, Va.

Democrats control both chambers of Congress but hold a narrow margin in the House. In the Senate, Biden needs at least 10 Republican votes to move his proposals through the legislative process. 

As part of negotiations, Biden will host congressional leaders in both parties in the White House next week on May 12. It’s a different step from negotiations in the $1.9 trillion COVID relief plan passed in March, which did not garner a single Republican vote. 

‘We’re going to work with Republicans. We’re going to find common ground. You know, the Senate last week passed by an overwhelming margin, a part of a water infrastructure bill that’s part of- related to our jobs plan. So I think you’re starting to see some progress here,’ White House chief of staff Ron Klain said on CBS’ ‘Face the Nation’ on Sunday. 

The president is considering breaking up his American Jobs Plan in separate bills to help shepherd them through Congress.

‘President Biden has been clear that he knows this is a negotiation, that he knows that negotiation requires compromise at some point, and that he wants to move this package forward in a bipartisan way, if that’s possible,’ senior White House adviser Anita Dunn said Sunday on CNN’s State of the Union. ‘We’re looking forward to having discussions. We are open to people’s ideas. This is discussion time and idea time for the White House.’

That plan, which focuses on infrastructure, has Republican support on traditional items like repairing roads and bridges along with expanding broadband internet access. 

The GOP has pitched a a $568 billion plan that focuses on roads, transit systems, and broadband internet. 

‘Frankly, if the White House is going to work with us, this is a deal we can do,’ Republican Senator Rob Portman said Sunday on ‘Meet the Press.’ 



Source | Dailymail

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