Billionaires leave $ 160 billion hole in Biden plan


US President Joe Biden greets reporters as he arrives for his annual medical exam at Walter Reed National Military Medical Center in Bethesda, Maryland, United States, United States November 19, 2021.

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WASHINGTON, Nov. 19 (Reuters Breakingviews) – President Joe Biden’s $ 1.8 trillion social spending program will not be entirely profitable, the US Congressional Budget Office said Thursday. But the $ 160 billion deficit, spread over 10 years, is a pittance compared to what could have been achieved by even raising taxes for the rich.

An example: increase the personal income tax rate to 39.6% from 37% and lower the amount to which it comes into play. That would have raised about 157 billion dollars, estimates the Conservative Tax Foundation. Adding an increase in the tax rate to 25% from 20% theoretically brings in an additional $ 78 billion.

Companies like Amazon.com will pay a bit more in taxes, but the business world will take only a small hit, thanks to objections from centrists of Biden’s own Democratic Party. Providing better child care and fighting climate change is worth running a modest deficit, but if Congress had had the audacity to take a step back from American plutocrats, it wouldn’t have been necessary. (By Gina Chon)

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Editing by John Foley and Sharon Lam

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