Biden: "Rich People Evade $160 Billion in Taxes Annually... Unfair"

Urging Parliamentary Approval of Budget to Prevent Fiscal Cliff and National Default

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] U.S. President Joe Biden emphasized the need for tax increases on the wealthy while demanding the passage of a $3.5 trillion social infrastructure investment bill through Congress. Biden’s move is interpreted as a direct breakthrough amid unresolved conflicts within the Democratic Party and across the U.S. Congress, increasing the likelihood of a failure to raise the debt ceiling and avoid the fiscal cliff.

On the afternoon of the 16th (local time), President Biden delivered a speech at the White House, highlighting the growing inequality among Americans and stressing the rationale for taxing the wealthy.

President Biden stated, "Since the COVID-19 pandemic, billionaires’ wealth has increased by $1.8 trillion," emphasizing, "This is unfair."

The Democratic-controlled House proposes raising the top corporate tax rate from the current 21% to 26.5%, and the individual income tax rate from 37% to 39.6%. For those earning over $5 million annually, the Democrats also plan to impose a 3% 'wealth tax.' Capital gains tax rates on real estate and stocks are also being pushed up from the current 20% to 25%.

This falls short of the tax increase levels initially proposed by the White House but represents a necessary concession to secure investment funding and reach an agreement.

President Biden said, "I am not trying to punish anyone. I am a capitalist. If you can earn $1 million or $1 billion, that is an amazing achievement. God bless them. What I am asking is that they pay their fair share, just like the middle class."

President Biden pointed out that the top 1% of wealthy individuals evade about $160 billion in taxes annually, stating, "This is not a level playing field. My plan will help fix this problem."

He added, "We are at a turning point. The decisions we make now could change the trajectory of our country for years, maybe decades," urging active cooperation from Congress.

Biden’s remarks came amid difficulties in passing the $3.5 trillion social infrastructure budget bill, next year’s budget, and raising the federal debt ceiling this month. There are conflicts between progressive and moderate factions within the Democratic Party, and Republicans reject the White House and Democratic proposals.

President Biden met with Democratic hardliners Senators Joe Manchin and Kyrsten Sinema a day earlier but reportedly failed to find common ground. Without their support, passing the Democratic bill is impossible.

On the same day, Biden also spoke with House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer to discuss the social infrastructure investment bill, the federal budget, and measures to raise the debt ceiling, but finding a clear solution remains difficult.

If the budget is not passed or a temporary budget is not enacted by the end of this month, a fiscal cliff will occur, halting federal government spending from October 1.

U.S. Treasury Secretary Janet Yellen has warned that if the debt ceiling is not raised, the U.S. could face a national default crisis between October and November.

This content was produced with the assistance of AI translation services.