Speaking at a union in Pittsburgh, the president said the idea is to make “the economy stronger, more resilient and innovative”. And he stressed that “millions of well-paid jobs will be created in the coming years”.
For the Treasury Secretary of the United States, Janet Yellen, the project can “make 80 years of history”. He has the power to fix structural problems that “have plagued the American economy for the past four decades” and “establish the success of the next four,” he said.
However, critics of the project point out that the counterpart, which provides for tax increases, may make the United States less competitive on the global stage.
According to estimates by the Tax Foundation, a center-right institution, the increase in taxes and possible cuts in exemptions to fund the program will make rates for companies in the United States the highest among the 37 countries of the Organization for Economic Cooperation and Development ( OECD), a group in which Brazil does not participate.
The USA would go from the current 12th position to the first place in the list of countries with the highest costs (see the graph).
“An increase in the federal tax rate to 28% would increase the total tax (federal plus state) to 32.34%, higher than all OECD countries, the G7 and all of our main trading and competing partners, including China . This would undermine the economic competitiveness of the United States and diminish our role in the world, ”says the Tax Foundation.
The consequence, the institution points out, would be a cut in personnel, contrary to Biden’s goal of generating jobs.
The tax hike promises to meet resistance in Congress, not only among Republicans, but also among moderate Democrats. It is worth remembering that both houses now have a Democratic majority, which tends to favor Biden’s proposals.
Senate minority leader Mitch McConnell, a Republican senator from Kentucky, said “support for the proposal is” unlikely “. The reasons involve the tax increases and the increase in the country’s indebtedness.
Democrat Nancy Pelosi, president of the House of Representatives, however, believes in the approval of the plan until July 4. The deadline, according to Reuters, could increase because Democrats and Republicans must warmly discuss details of the plan before reaching consensus.
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