US Dollar Softens as Biden Proposes $2-Trillion Spending Package

US Dollar Softens as Biden Proposes $2-Trillion Spending Package

"Joe Biden's radical plan to implement the largest tax hike in American history is a massive giveaway to China, and many other countries, that will send thousands of factories, millions of jobs, and trillions of dollars to these competitive Nations", the ex-president said.

For example, technology companies are more likely to oppose the 15% minimum tax on book income in Biden's plan, the person said - especially a company like Amazon.com Inc, that's both a tech company with research-and-development investment and a company that owns retailers like Whole Foods Market Inc with brick-and-mortar stores.

Raising the corporate tax rate for all businesses isn't the answer because too many companies are now paying little to no corporate income tax, while others pay full freight, said Michael Hanson of the Retail Industry Leaders Association.

The $2.3 trillion plan proposes to transform the United States economy, in what Mr Biden billed as "a once-in-a-generation investment in America" that would undo his predecessor's signature legislative achievement - giant tax cuts for corporations.

"We do not believe the administration's funding proposal is politically tenable nor a reliable long-term solution", said President and Chief Executive Chris Spear in a statement.

"Our adversaries are anxious about us building this critical infrastructure", he said, noting that the decline in America's gross domestic product means "the rest of the world is closing in, and closing in fast".

Now law, the $1.9 trillion coronavirus relief package served as a cornerstone opening achievement for not just the White House, but the Democratic majorities on Capitol Hill.

The plan doesn't call for increases on individual income taxes, though the White House is looking at increasing the top marginal income-tax rate and raising taxes on capital gains in future legislation.

Emmanuel Macron expected to announce strict new lockdown measures in televised address
Macron defended his decision not to lock the country down then, saying people had benefitted from "precious weeks of liberty". A situation made worse by a Covid-19 variant, P1, that is both more contagious and potentially more lethal too.

The response from the business community to the tax increases is likely to be uneven, as some industries would be more affected than others, the person said.

Senate Republican leader Mitch McConnell dismissed the package as nothing more than a "Trojan horse" for tax hikes.

For the electrical grid, the plan calls for $100 billion in new investments, incentivizing the construction of higher voltage capacity lines, and the expansion of tax credits for producing clean energy.

Congressional Democrats say they are ready to deliver on Biden's agenda, but they also note that a two-part, sweeping $4 trillion-plus proposal will be received in a very different manner than Biden's first significant legislative victory. Any Republican who wants to help get this done.

Democratic leaders embraced the President's plan. "But we have to get it done". Still, Biden said he's open to working with Republicans who have different ideas about how to improve the nation's infrastructure. The Business Roundtable, a group of CEOs, would rather have infrastructure funded with user fees such as tolls.

"This legislation would be among the largest self-inflicted economic wounds in history".

Infrastructure spending usually holds the promise of juicing economic growth, but by how much remains a subject of political debate. Those kinds of analyses have led liberal Democrats in Congress such as Washington Rep. Pramila Jayapal to conclude Tuesday, "The economic consensus is that infrastructure pays for itself over time". For context, the COVID package was $1.9T for this year *alone, * with some provisions lasting 2 years.

"This tax hike is a classic globalist betrayal by Joe Biden and his friends: the lobbyists will win, the special interests will win, China will win, the Washington politicians and government bureaucrats will win-but hardworking American families will lose", he added. Tom Suozzi of NY and Bill Pascrell and Josh Gottheimer of New Jersey in a joint statement.

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