On Wednesday President Joe Biden reintroduced the $2.25 trillion American Jobs Plan proposal, which would significantly impact American businesses.
“America is… turning peril into possibility. Crisis into opportunity. Setback into strength,” Biden said about the proposed plan that would take 15 years to raise $2.5 trillion in revenue.
The ensuing tax consequences from the proposal are as follows:
- Raise the corporate tax rate from 21 percent to 28 percent
- Raise taxes on those making more than $400,000 a year
- Repeal tax cuts for income earned by American companies exporting goods and services abroad
- Expand the global minimum tax to 21 percent
- Repeal the tax code to limit corporate transactions in which a U.S. company moves its headquarters abroad by becoming a subsidiary of a foreign acquirer
- Shift the tax burden in energy sector from fossil fuels to clean energy in the form of subsidies
The tax and spending proposal comes with what Senator Mitch McConnell (R-KY) said is an “Orwellian campaign” that looks to re-label many liberal policies as “infrastructure.”
McConnell was referring to Sen. Kirsten Gillibrand’s (D-NY) tweet, which defended paid leave, child care, and caregiving as “infrastructure” under the future infrastructure legislation.
However, it seems the Biden administration has decided to include many of those unrelated items into what he calls a “human infrastructure’”proposal or the so-called $1.8 trillion American Families Plan.
Those two legislations combined with the $1.9 trillion coronavirus package in March “marks $6 trillion in proposed spending for Biden in his first 100 days as president. $1.8 trillion for the American Families Plan, $2.3 trillion for his American Jobs Plan on top of the $1.9 trillion coronavirus rescue package.”
The massive spending and tax increase associated with the new legislation contradicts what President Biden promised during his presidential campaign, bipartisan leadership.
In Biden’s first 100 days, Democrats have introduced the following radically liberal initiatives: Packing the courts, amnesty, reparations, federalized elections, D.C. statehood, and banning the Electoral College.