As America slouches toward the midterm elections, you need an economic message that celebrates your accomplishments to date – job creation and higher wages – yet also takes aim at the major abuses of economic power that remain in the system, fueling inflation and widening inequality.
You should put these 10 indisputable facts center stage:
1.
Corporate profits are at a 70-year high. Yet corporations are raising their prices.
https://www.theguardian.com/commentisfree/2022/apr/10/biden-large-corporations-2024-election
Mr. President Biden already has for the following reasons:
Biden Administration's FY 2022 Budget and Its Tax Increases for Corporations, Wealthy
The Biden Administration on May 28, 2021, released its fiscal year (FY) 2022 budget. The $6 trillion budget, the largest since World War II, focuses on rebuilding the nation's aged infrastructure, augmenting the social safety net and combatting income inequality. The theme is to grow the U.S. economy from the bottom up and middle out, and not from the top down.
To fund some of these expenditures, the Biden Administration proposes to increase taxes on the wealthy and corporations and to enhance Internal Revenue Service (IRS) compliance, information and enforcement initiatives, projected to raise $3.6 trillion in revenues over a decade.
This Holland & Knight alert provides an overview of the proposed corporate and individual income tax increases as detailed in the U.S. Department of the Treasury May 2021 General Explanations of the Administration's Fiscal Year 2022 Revenue Proposals (the so-called Green Book). Subsequent alerts will focus on discrete topics, such as the impact of proposals on estate and wealth transfer planning, carried interests, Green Energy, select international tax changes, repeal of BEAT and replacement by SHIELD, interaction of the U.S. global minimum tax proposal with the Organization for Economic Cooperation and Development (OECD) Inclusive Pillar 1 and Pillar 2 initiatives and enhanced IRS compliance, enforcement and information reporting.
These proposals reflect the administration's priorities and should be viewed as an opening bid in negotiations with Congress. Changes are likely, particularly because of the close margins by which the Democrats control the House and Senate and also because of the views of some of the more moderate Democratic members in the Senate. It will be important to carefully monitor Congressional considerations.
By way of background, the budget that the president submits to Congress contains estimates of federal government income and spending for the upcoming fiscal year and also recommends funding levels for the federal government. Congress then considers and passes appropriation bills. If Congress does not pass all appropriation measures by the start of the fiscal year (October 1), it has to enact a continuing resolution to keep the government running. The committees of jurisdiction are responsible for considering revenue proposals and any changes to the Internal Revenue Code.
As relevant to this discussion, the Biden Administration fiscal year (FY) 2022 budget incorporates the administration's American Jobs Plan infrastructure proposal (and accompanying Made in America Tax Plan) and its American Families Plan and adds details on the Administration's request for annual operating expenditures for government agencies. It focuses on wealth redistribution and not growth. (See Holland & Knight's previous alerts, "Biden Administration's Made in America Tax Plan: Procedural Aspects," April 8, 2021; "Biden Administration's Made in America Tax Plan: Interaction with OECD Inclusive Framework," April 15, 2021; and "Biden's American Families Plan Proposes Income Tax Hikes," April 29, 2021.)
The administration's budget, which reflects the administration's tax and policy priorities, is an opening bid in negotiations with Congress and is likely to change as it winds its way through Congress, particularly because of the close margins by which the Democrats control the House and Senate and also because of the views of the more moderate Democratic members in the Senate.
The General Explanations of the Administration's Fiscal Year 2022 Revenue Proposals (the so-called Green Book) prepared by the U.S. Department of the Treasury, accompanies the administration's budget and provides an explanation and revenue estimates for the administration's revenue proposals. The 2021 Green Book is the first Green Book since the Obama Administration, and provides details (current law, reasons for change, explanation of proposal and effective date) as well as revenue estimates for the American Jobs Plan and the American Families Plan.
The tax reforms proposed in general are intended to modernize the U.S. tax system to respond to current fiscal challenges, including to raise revenue, to improve tax administration and to make the tax system more equitable and efficient."
https://www.hklaw.com/en/insights/p...trations-fy-2022-budget-and-its-tax-increases
American Rescue Plan Act of 2021
The American Rescue Plan Act of 2021, also called the COVID-19 Stimulus Package or American Rescue Plan, Pub.L. 117–2 (text) (PDF) (March 11, 2021), is a US$1.9 trillion economic stimulus bill passed by the 117th United States Congress and signed into law by President Joe Biden on March 11, 2021, to speed up the country's recovery from the economic and health effects of the COVID-19 pandemic and the ongoing recession.[1] First proposed on January 14, 2021, the package builds upon many of the measures in the CARES Act from March 2020 and in the Consolidated Appropriations Act, 2021, from December."
https://en.wikipedia.org/wiki/Ameri...merican Rescue Plan Act,2021, to speed up the
