The major reason for this news is Biden’s will to increase taxes for the rich to fund his plan of reshaping the economy. Biden seeks to increase taxes for the rich in a move he terms as ‘ensuring the rich their fair share of taxes’ to pump about four trillion US dollars into the economy (Tankersley). In his plan to reshape the economy, he is seeking to alleviate poverty, cut down prekindergarten costs, and make vocational college free to everyone.
In the new tax policy, households earning more than four hundred and fifty thousand US dollars will get an increase in their taxation in different categories. The income tax will also raise to 39.6 percent from 37 percent set in 2017 (Tankersley). This push by Biden to rebalance the disproportionate economy is expected to meet fierce resistance from the Democrats. This is because it does not address the most important issue of the boosting of healthcare using taxes gained from the new policy (Luhby and Lobosco). However, Democrats are likely to shift and side with the policy by proposing new but with the condition of lowering percentages of tax increase in different categories in the new policy (Luhby and Lobosco). This is an extremely sensitive matter that the government and citizens are waiting for the decision of the Senate.
Get Woke
Increasing taxes for the rich has been one of the most engaging topics in the past two governments. It is critical issue because it will be a clash between Republicans and Democrats and will test the depth Democrats are willing to go minimize to effects of capitalism. The new policy that will pump money into the economy to fund the child tax credit, free vocational college, and national paid leave program will also affect everyone. Thus, this news is a major concern to everyone in the country as it will impact both the rich and poor. Fairness is hard to achieve in the country, but it is necessary, even though it will have negative effects. Finally, if the policy goes through, there would be a major dynamic effect in the way Americans will view both Republicans and Democrats, and that is why I choose this subject matter.
Be Woke
The tax policy has been a subject that the Trump administration always wanted to implement, but its time ended without being implemented thus making it a major concern for both the government and citizens. The tax policy will also contribute a lot to child poverty alleviation through child tax credit amongst other important advantages that will come with it. I choose this topic because it would give me a prospect of how the rich are viewed by the government. This policy will, however, cause a ripple effect and it might end up scaring off investors and may also take up to a year for it to be fully implemented questioning its time feasibility. It surprised me that for Biden’s plan to reshape the economy, taxing more the rich would be his source of funds to implement it. There always would be divergent views about this sensitive subject.
Stay Woke
- Is the new policy to increase tax for the rich, seeking to punish the rich, and if so, is it constitutionally correct as the constitution treats everyone equally?
- If the policy passes, how will it affect the Republicans’ and Democrats’ political demography?
- Will the positive effects of the new policy outweigh the negative effects it is expected to cause?
Works Cited
Luhby, Tami and Lobosco, Katie. “‘Tax the Rich’ Plans at Risk as ‘Democrats’ Talks Drag on.” Edition CNN, 2021. Web.
Tankersley, Jim. “In Push to Tax the Rich, White House Spotlights Billionaires’’ Tax Rules. The New York Times, 2021. Web.