Will Elon Musk, Jeff Bezos, and other American billionaires be taxed more? This is one of the measures in Joe Biden’s 2023 budget proposal to get “billionaires to pay their fair share.” At the same time, the president wants to spend more on “fighting Russian aggression” against Ukraine and against crime in the United States. The White House specified in a statement that this minimum tax on the rich “will apply only to the richest 0.01% of households – those with more than $100 million – and more than half of the revenue will come from billionaires alone.” “This will ensure that in any year they pay at least 20% of their total income in income taxes,” she added. The left wing of the Democratic Party has long called for a tax on billionaire incomes to fight inequality.
A similar proposal was considered last year as part of negotiations for the “Build Back Better” plan, a massive social and environmental spending bill. But the Biden administration abandoned it in October to try to salvage its plan, which was eventually stalled by divisions among Democrats in Congress. The 2023 budget also plans to raise the corporate tax rate to 28%, reversing legislation passed under Donald Trump in 2017 that lowered it to 21%. The White House said, noting that the new rate at 28% would remain a historically low.
“Fighting Russian Aggression”
Washington remembers that it also backed an agreement negotiated under the Organization for Economic Co-operation and Development (OECD) that would set a minimum tax of 15% on businesses worldwide. The administration notes that the proposed budget “contains additional measures to ensure that multinational corporations operating in the United States cannot use tax havens to lower the global tax floor.” Meanwhile, the proposed US budget includes $6.9 billion for the European Deterrence Initiative, the North Atlantic Treaty Organization (NATO), and “anti-Russian aggression” plus an additional billion for Ukraine.
If the budget is approved by Congress, this money will be added to other aid already issued to kyiv. The White House explained that the goal of this new assistance is to “improve the capabilities and readiness of US forces, NATO allies, and regional partners in the face of Russian aggression.” The 2023 budget proposal, which covers the period from October 1 to September 30, details the Biden administration’s spending priorities for the next year. It is subject to amendments approved by Congress, where Democratic lawmakers control both houses but by narrow majorities and are divided on a number of issues. So the sharp increase in defense spending is likely to clash with the party’s left wing.
More police officers
Domestically, the plan includes $3.2 billion to put more police officers in the field and $30 billion to tackle crime. The Biden administration also wants to provide more resources to fight gun violence, allocating $1.7 billion. The Biden administration has also allocated $1.4 billion to the World Bank’s International Development Association. “This investment restores the United States’ historic role as the World Bank’s largest donor to support the development of low- and middle-income countries,” the White House said. She notes that contributing to global stability and mitigating climate and health risks is beneficial to the United States and Americans.
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