Freddie

In this brief article I will be explaining Joe Biden’s and his democrat’s new economic plan that'll take place on the 20th of january.

Joe Biden campaigned on an economic platform, to extend healthcare, shore up the middle class, raise taxes on the wealthy and invest trillions of dollars into green energy infrastructure. Among some other issues Trump may have caused he has to deal with the ever rising costs on coronavirus, the economic damage that it has caused. Here are Biden’s plans:

• Provide health insurance coverage for 97% of Americans in 10 years,

• Raise an additional $4 trillion in tax revenue by increasing top tax rate to 39.6%, taxing capital gains at ordinary rates and raising the corporate tax rate to 28%.

• Forgive student loan debt and make college free for those making up to $125,000.

• Raise minimum wage to $15 an hour and repeal "right to work" laws.

• Expand "Buy American" policies through government purchasing, while using subsidies, federal matching, and incentives to make American products more competitive.

• Invest $1.3 trillion in infrastructure over 10 years.

• Spent $2 trillion on clean energy during first term as president.

Mr President, formally announced his covid 19 stimulus plan that will cost 1.9 trillion dollars. He referred to what many economists are calling a k shaped recovery. He added that the top 1% of wealth has grown 1.5 trillion since last year which is four times the amount of the bottom fifty.

Within the first 100 days of his administration he wants to open up most schools and administer at least 100 million vaccine doses. In the coming weeks he will announce his separate plan for the economic recovery. Which will include investments in infrastructure, manufacturing, create millions of additional good paying jobs and combat the climate crisis.

This rescue plan of his doesn’t mention taxes or any increase in them, which should mean the federal government will pay for it with debt. The main elements to the rescue plan are as follows:

Direct aid ( one trillion dollars) He will raise the current 600 dollar per person checks to 1,400 dollars. Extending emergency unemployment insurance and evictions through to September 2021. $25 billion in rental assistance and $5 billion to cover home energy and water costs. $5 billion in emergency assistance for the homeless. Child care and food program funding. Expanding the child care tax for one year. Raising the federal minimum wage, which has been at $7.25 an hour since 2009, to $15 an hour.

Public health effort and reopening schools ($400 billion): A $20 billion national vaccination program, $50 billion expansion of testing, hiring 100,000 more public health workers, $30 billion into the Disaster Relief Fund for PPE etc. $130 billion to open most schools by spring. He also wants OSHA to issue rules that protect all workers.

Support local communities ($440 billion): Help for governments dealing with revenue shortfall to keep front line public workers on the job. Small business grants and loans. $20 billion for public transit agencies. (D’Souza)

Official data from the Census Bureau shows that the overall number of people with no health insurance for the entire year was lower at 8% in 2019 compared to a 8.5% in 2018. He has also stated and promised to build on the ACA (affordable care act) he also stated that healthcare is a right and not a privilege. He doesn’t support medicare for all or eliminating private insurance because that would mean undoing obamacare and starting over on political negotiations. He also debated that Medicare for all would cost more than 30 trillion dollars over ten years.

Biden wants a “pro growth”, progressive tax code. His plan is to raise up to 4 trillion dollars in additional revenue over this decade. The highest income, 20 % of households make about 170, 000 or more would be the ones bearing nearly 93% of the burden of bidens tax increase and the top one percent nearly three quarters.

• Raise the top income tax rate back to 39.6% from 37%

• Tax capital gains and dividends at ordinary rates for those with annual incomes over $1 million

• Tax unrealized capital gains at death

• Apply Social Security payroll tax for those earning over $400,000 a year

• Close the stepped-up-in-basis loophole

• Raise the top corporate income tax rate to 28% from 21%

• Impose a 15% minimum tax on book income of large companies (at least $100 million annual net income)

• Tax profits earned from foreign subsidiaries of U.S. firms at 21%

That is a list of what changes he wants in place.

The largest federal tax expenditures in 2019.

Lastly but not least Biden wants to change Student Debt. He wants to forgive all undergraduate tuition debt for those who attended two or four years in public colleges and universities. He claims he will fund this by repealing the high income tax cut.

D’Souza, Deborah. Joe Biden’s Economic Plan. 15 Jan. 2021, https://www.investopedia.com/joe-biden-s-economic-plan-save-the-middle-class-4769869.