Joe Biden proposes raising taxes on the rich in the US and giving more aid to NATO

The president of the United States (USA), Joe Biden, proposed a new minimum tax of 20% for billionaires, according to the 2023 budget project released this Monday, March 28, by the White House.

“To address this glaring problem once and for all, the budget includes a minimum rate of 20% for millionaires and billionaires, who often pay such low tax rates that they are indefensible,” the text says.

The project adds that this tax will apply only to 0.01% of the richest households in the country, those with income of more than 100 million dollars, and more than half of the income will come only from billionaires.

“This would guarantee that in one year they pay at least 20% of their total income in income taxes,” he added.

The 2023 budget also plans to increase the corporate tax rate to 28%, reversing legislation passed in 2017 by the previous administration of former Republican President Donald Trump (2017-2021), which lowered it to 21%.

“Although their profits soared, their investment in our economy did not: the tax exemptions did not reach workers or consumers,” justified the White House, which stressed that the new rate remains the lowest for large companies. since World War II, except for the years after the 2017 tax cut.

Washington recalls having also supported an agreement negotiated with the Organization for Economic Cooperation and Development (OECD) that establishes a minimum tax of 15% for companies worldwide.

The Biden administration points out that the budget proposal contains additional measures to ensure that multinational companies operating in the United States cannot use tax havens to reduce the global minimum tax.

On the other hand, the United States proposes 6,900 million dollars for the European Deterrence Initiative, the NATO Atlantic alliance and the “fight against Russian aggression” to Ukraine, in addition to an additional 1,000 million in assistance for Kyiv.

If Congress adopts the budget, this amount would go on to increase other aid already disbursed in favour of Ukraine.

The funds would be used to “enhance the capabilities and readiness of US forces, NATO allies and regional partners in the face of Russian aggression” against Ukrainian sovereignty, the White House said.