World

US President Joe Biden’s Proposed Budget Aims to Raise Ukrainian Aid, Tax the Rich

Joe Biden’s budget must be approved by a Democrat -dominated Congress with a slim majority. (File)

Washington:

The United States will allocate billions of dollars in aid to Ukraine, tax the rich and lower its deficit under a budget proposal announced by President Joe Biden on Monday.

The massive $ 5.8 trillion plan will pay for much of Biden’s policy proposals, as his administration struggles with low approval ratings, a high wave of inflation and the ongoing uncertainty associated with the Covid-19 pandemic.

The budget must be approved by Congress, which is dominated by Biden’s Democratic party with a slim majority, but where bipartisan lawmakers are sure to demand change.

Left -wing Democrats are likely to reject a proposal for a sharp four percent increase in defense spending, for example.

“The budget is a statement of value,” Biden said, when he announced the move.

His administration plan “sends a clear message that we value fiscal responsibility, safety and security at home and around the world, and the investments needed to continue our equitable growth and build a better America,” he added.

Among its provisions is the inflow of funds of $ 6.9 billion for Ukraine to assist in defending itself from Russian aggression, as well as to assist NATO. Another $ 1 billion will be used for Washington’s efforts to counter Moscow’s influence.

The Pentagon’s proposed overall budget of $ 773 billion highlights the various international challenges facing the United States.

While the Department of Defense insists that Russia through its invasion of Ukraine poses an “acute threat” to world order, China remains a major strategic risk for the United States, it points out.

“Fiscal 2023 budget demands remain in line with our strategic approach, and prioritize China as a fast -paced challenge and recognize the acute threat posed by Russia,” Joint Chiefs of Staff vice chairman, U.S. Navy Admiral Christopher Grady, told reporters.

Rich People Tax

Biden also proposed a minimum tax on taxpayer income that generates more than $ 100 million, meeting the demands of progressive Democrats who call for taxing the rich as a way to tackle inequality.

“This minimum tax will be levied only on the richest 0.01 percent of households – those with more than $ 100 million – and more than half of the revenue will come from billionaires alone,” the White House said in a statement.

“It will ensure that, in any given year, they pay at least 20 percent of their total income in federal income taxes.”

Under the plan, Biden said that “rich people will eventually pay their fair share,” pointing to firefighters and teachers paying higher tax rates than billionaires who take advantage of vulnerabilities.

All told, the proposal would lower the U.S. budget deficit by $ 1.3 trillion next year, though the $ 24.8 trillion national debt will continue to rise, according to projections published by the White House.

Restoring the Economy

While the U.S. economy has regained much of the position lost by the Covid-19 pandemic since Biden took office last year, its approval rating was dampened after the supply chain suffered, rising oil prices and strong consumer demand caused inflation to rise to levels not seen since. . the 1980s.

The budget plan was released months after Biden’s landmark law to spend hundreds of billions of dollars to overhaul the nation’s social services and fight climate change, dubbed Build Back Better, stalled in Congress because of divisions among Democrats.

The budget revived a proposal first thought of during negotiations on a bill to raise the corporate tax rate to 28 percent, reversing a law passed under Donald Trump from the previous Republican Party in 2017 that lowered it to 21 percent in an effort to increase business.

“While their profits are increasing, their investment in our economy is not: tax relief is not falling to workers or consumers,” the White House said, noting the new rate “is still the lowest tax rate faced by companies since World War II. year after the 2017 tax cut. “

Less controversial is the proposed $ 6.9 billion infusion aimed at “enhancing the capabilities and preparedness of the U.S. military, NATO allies and regional partners in the face of Russian aggression,” according to the White House.

Another $ 1 billion will be channeled to defense and state departments as well as USAID “to counter Russia’s nefarious influence and to meet emerging needs related to security, energy, cybersecurity issues, misinformation, macroeconomic stabilization and civil society resilience.”

Washington has also backed an agreement negotiated under the auspices of the Organization for Economic Co -operation and Development that would place a minimum tax of 15 percent on companies worldwide.

The White House said the budget proposal “contains additional measures to ensure multinational companies operating in the United States cannot use tax havens to reduce global minimum taxes.”

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Agrasmartcity

Welcome to India's Largest news platform, I assure you that we daily update on Global news which helps you to grow your knowledge.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button
AllEscortAllEscort