New York – President Joe Biden took office at noon on Wednesday. During his campaign, he made big promises to restore the economy and accelerate recovery from the pandemic.
Here are some of the policies he plans to institute to get Americans back to work, increase the number of jobs, increase racial equity, and raise taxes, with the goal of reopening the economy.
Response to covid-19
Biden’s first changes to Trump’s policyBiden’s plan for Day One of his administration, as detailed on his campaign website, aims to control the COVID-19 crisis. Calls to double the number of self-service testing sites nationwide, invest in home testing, and hire at least 100,000 Americans to conduct contact tracing. It also wants to invest $ 25 billion in the manufacture and distribution of vaccines, with the goal of bringing a vaccine to all Americans at no cost.
The plan also involves providing funds to state and local governments so they can avoid budget deficits and ask Congress to help schools with resources for covid-19 and cover part of the costs related to covid-19 for small businesses. .
Biden said he will not raise taxes on people who earn less than $ 400,000 a year. But he plans to increase revenue in the following ways:
- Raise the maximum income tax rate to 39.6%, as it was during the administration of President Barack Obama, from 37% today
- Increase the corporate tax rate from 21% to 28%
- Require US companies to pay a minimum tax of 21% on foreign income
- Establish a tax penalty for companies that transfer jobs abroad but continue to sell products to the United States
- Require a 15% tax on the accounting income of companies
- Anyone earning more than $ 1 million per year will have to pay taxes at the same rate for investment income, as it is on their wages.
Biden also said he wants to expand the child tax credit to help working families during the pandemic to give parents $ 3,000 per year for each child between the ages of 6 to 17, and $ 3,600 for each child under 6 years. He plans to expand access to refundable tax credits for health premiums, up to $ 8,000 a year in tax credits to help pay for child care.
A study by the Wharton School of the University of Pennsylvania projects that Biden’s tax plan would increase revenues by $ 2.3 to $ 2.6 trillion over the next 10 years with little impact on GDP.
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Biden plans to create “at least 5 million” new manufacturing jobs. It wants to invest $ 400 billion in investments in acquisitions, processes such as supply chains, which drive demand for American products and services, and $ 300 billion in research and development in technology, including artificial intelligence and 5G.
The federal minimum wage, which is currently US $ 7.25, would rise to at least US $ 15 an hour.
As part of his employment plan, Biden also wants to invest $ 70 billion in historically black colleges and universities and tribal schools, a move that includes a number of initiatives including scholarships and new facilities.
On clean energy, his administration would buy billions of dollars worth of clean vehicles and products and require countries that are not environmentally friendly to pay a carbon adjustment tax.
Another priority in Biden’s plans is promoting racial equity. He said he will fund state and local investment initiatives for black and brown entrepreneurs, as well as provide up to $ 100 billion in low-interest business loans to black communities through state and local loan programs.
Biden is calling for $ 10,000 of each student’s federal student loan debt to be immediately written off as part of the pandemic relief response. An additional $ 10,000 of student loan debt will be forgiven for each year of community service performed by individuals for up to five years, under Biden’s plan. He also wants to double the maximum number of Pell Grants and increase the number of students who can access financial aid, while cutting federal student loan payments in half.
Those who historically attended black colleges or institutions that serve minorities and earn up to $ 125,000 should have all their debts forgiven, according to Biden, and the schools would be free for students whose families have incomes below $ 125,000.
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Biden also plans to adopt Elizabeth Warren’s bankruptcy reform proposal, which would streamline bankruptcy proceedings and allow people who file for bankruptcy to set aside funds for childcare and items like toys and books.
He also wants to expand worker protection rights and make it easier for workers to join unions without employers forcing them to participate in mandatory meetings or preventing negotiations.
Biden seeks to eliminate private money from federal elections through a constitutional amendment, according to his website, that would require candidates to rely solely on public money for their campaigns. He is also calling for a law that prevents foreign nationals from influencing US elections and creates more transparency in election spending, so that a Facebook ad would be required to reveal who is donating in campaigns.
On the infrastructure front, Biden will propose a 10-year, $ 1.3 trillion plan aimed at making middle-class American workers more competitive on a global scale, pushing the United States to adopt more clean energy processes, and grow the economy.
As for how these reviews will be paid for, Biden said reversing Trump’s tax cuts will offset some of the costs of the plan.
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