Archive for April, 2021

Presidential candidate Joe Biden proposed last year a $7 trillion fiscal package to update U.S. infrastructure. Recently, President Biden proposed a $2 trillion infrastructure package designed to upgrade bridges, roads, rail, etc…. The president insists taxes should be raised on corporations to pay for the package, which will be phased in over eight to ten years, which means he is proposing peanuts to upgrade everything.

One has to wonder if Biden is serious about this, or is he just proposing something he has no intention of fulfilling in order to placate the increasingly bigger progressive wing of the Democratic party? Conservative Democratic U.S. Senator Joe Manchin has reportedly called for a $4 trillion package

As you can see from the poll above, 65 percent of Americans support raising taxes on corporations in order to pay for Biden’s program. Even Manchin has publicly called for raising the corporate tax rate from 21 to 25 percent. Most major corporations pay little or no federal tax as it is, which suits the billionaires who fund both major political parties just fine since they get more money in their bank accounts via higher share prices and rising dividends with less corporate taxation. More corporate taxation means lower share prices and less dividends.

“The Institute on Taxation and Economic Policy, a progressive think tank, revealed in a report last week that no fewer than 55 of America’s biggest businesses did not pay any federal corporate income taxes in the most recent fiscal year. This is in spite of the fact that they netted hefty pretax profits in 2020, a development that the think tank attributes to decades of tax policies that benefit the wealthy.”[i]

So one has to question how serious Biden really is on this issue since the billionaires fund his campaigns, and will provide stipends of $350+ thousand for every speech the president will give once he is out of office. The answer may be that Biden is not serious at all about this issue, that he is only faking he is serious, and the Wall Street Democrats will engineer a way to inflict a defeat on their own infrastructure package and force President Biden to feign public anger in the face of such a mortal wound.

The president can use the budget reconciliation process to raise the taxes of corporations to fund his proposal, undercutting Republican party efforts to shoot it down. The guess here is that the billionaires funding the Democratic party will insist on the self-inflicted defeat. That is not what the base wants, or what 65 percent of the American public wants, but thanks to the billionaires control of the Supreme Court, the United States is a democracy in name only. So expect Biden to opt for the self-inflicted defeat. Otherwise, the proposal is something that will be done.

[i] https://www.salon.com/2021/04/07/americas-biggest-corporations-paid-no-federal-income-taxes-last-year-study/


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