Enter 2021.03.17 11:40
“Stimulus policy, nature to finance infrastructure investment”
Tax revenue is expected to increase by 2375 trillion won over the next 10 years.
The ruling party also detected negative airflow… “Symptoms postponed”
In an interview with Bloomberg, deputy director of the White House National Economic Commission (NEC) Barat Ramamuti, “We started a concrete discussion on protecting middle-class households, including $110,000 a year by raising the tax burden on businesses and the wealthy.” “The president’s core belief is that the large corporations and the high-income people who have done so have to pay more taxes.”
He stressed that encouraging large corporations and multinational corporations to expand their investment in the United States is one of the main objectives of the policy. It also explained that the Bidenpyo tax increase program will focus on increasing social contributions to companies and wealthy individuals who have rather gained unprecedented gains due to the market’s reversal during the corona19 pandemic.
◇ Reflecting the presidential election pledge… “For large-scale economic stimulus financing”
This is the first time since 1993, during the Bill Clinton administration, that the U.S. administration has been pushing for massive increases. At the time, President Clinton raised income and fuel taxes amid the economic downturn and rising unemployment rates. While President George W. Bush cut some tax cuts, it has been almost 30 years since a comprehensive tax increase plan has been pushed forward.
Bloomberg cited several high-ranking officials, and the Biden administration △increased the corporate tax rate (21%→28%) △increased the highest income tax rate for high earners with an annual income of $400,000 or more (37%→39.6%) △1 million annual capital income It said that it is considering raising the tax rate for more than USD △Reducing corporate tax exemption and expanding the scope of real estate tax.
This is what President Biden promised during the presidential election last year, and the main idea is to raise the tax rate, which was lowered by the former administration of Donald Trump. Former President Trump implemented an aggressive tax cut policy, such as lowering the corporate tax rate from 35% to 21% in 2017 and the highest tax rate from 39.6% to 37% by 2025. White House spokesman Jen Saki said in a briefing the day before: “Middle-class families pay more taxes than their fair share, and those with the highest income aren’t doing enough.”
Bloomberg analyzed that the U.S. administration’s promotion of tax increases is to cover massive stimulus measures and additional infrastructure investments after Corona 19. Since March of last year, the US has implemented a total of six stimulus measures and has spent about 5.6 trillion dollars. It is about $900 billion more than the federal government’s fiscal year 2020 budget. Some organizations, such as tax-related non-profit organizations, predict that biden’s presidential election pledges will increase revenues of $2.1 trillion (about 2375 trillion won) over 10 years.
◇ McConnell’s “Trojan Horse full of left-wing pledges” also opposes the ruling party
The question is whether Congress will cooperate. This is due to concerns that the pandemic has not ended and the unemployment rate is still high, and it is too early to push for an increase. The Republican Party is insisting that it will not cooperate with the Biden administration’s infrastructure investment plan, which is directly linked to tax increases. Republican Senate Representative Mitch McConnell said in the news of the White House’s promotion of tax increases that “the tag will be a’Infrastructure Bill’, but it will become a’Trojan horse’ full of leftist policies in fact,” and “I don’t expect bipartisan support to pay more taxes. Don’t.”
Reportedly, it is known that not only the Republican Party but also some of the ruling Democratic Party have a negative current about the increase in taxation. The fact that the unemployment problem has not been properly resolved in each district has prompted the government to postpone the timing of tax increases.
The Washington Post (WP) said the U.S. Treasury Department plans to propose a lower limit for corporate tax rates to member states of the Organization for Economic Cooperation and Development (OECD). It will prevent countries from competing to cut corporate tax rates to attract companies. In particular, it was discussed that the minimum limit was set at 12%, but it was discussed how to impose additional taxation on multinational corporations that have invested in countries that have violated this. However, the public opinion is that it is unlikely that underdeveloped countries, etc., which are urgently in need of attracting companies, will agree on the proposal.