The US administration is going to increase taxation of the richest Americans, who earn over $ 400 thousand a year and have increased their wealth during the coronavirus pandemic. This was announced on April 28 in his first address to the Senate and the House of Representatives of the US Congress by President Joe Biden.
“I will not raise taxes for people earning less than $ 400,000 a year. It’s time for corporate America and the richest 1% of Americans to pay their fair share. Just pay your fair share, ”Biden said.
According to the American president, a study was recently conducted that showed that 55 of the largest US corporations did not pay federal income taxes in 2020. He said that many companies evade taxes through tax havens.
“They take advantage of tax loopholes and deductions that allow them to move jobs and take profits abroad. This is wrong, ”added Biden.
The American leader announced his intention to reform the corporate tax system so that wealthy companies “help pay for government investments that will benefit their business.” He noted that the richest 1% of Americans who earn more than $ 400 thousand a year will pay taxes at a rate of 39.6%.
Biden also criticized former US President Donald Trump’s decision to cut taxes in 2017.
“It was supposed to pay for itself and provide huge economic growth. Instead, it led to an increase in the deficit by $ 2 trillion, ”the head of state said, pointing out that instead of using the tax savings to raise salaries and invest in development, billions of dollars went into the pockets of company executives.
Biden stated that the coronavirus pandemic has widened the income gap in the United States. He said 20 million working-class and middle-class Americans were unemployed. At the same time, the net worth of some 650 billionaires in the United States has increased by more than $ 1 trillion, now their net worth exceeds $ 4 trillion.
On March 15, Bloomberg reported that Biden would be conducting the first major federal tax hike since 1993. The proceeds from the tax increase will go to finance a long-term economic program, which is a continuation of the state support measures taken to combat COVID-19.