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      Biden targets America’s wealthiest with proposed minimum tax on billionaires

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      Biden targets America’s wealthiest with proposed minimum tax on billionairesTax on households over $100m aims to ensure wealthiest Americans no longer pay lower rate than teachers and firefighters Joe Biden proposed a new tax on America’s richest households when he unveiled his latest budget on Monday.The Biden administration wants to impose a 20% minimum tax on households worth more than $100m. The proposal would raise more than $360bn over the next decade and “would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters”, according to a factsheet released by the White House.‘I make no apologies’: Biden stands by ‘Putin cannot remain in power’ remarkRead moreThe plan – called the “billionaire minimum income tax” – is the administration’s most aggressive move to date to tax the very wealthiest Americans.The tax is part of Biden’s $5.8tn budget proposal for 2023, which also sets aside billions for the police and military as well as investments in affordable housing, plans to tackle the US’s supply chain issues and gun violence.“Budgets are statements of values, and the budget I am releasing today sends a clear message that we value fiscal responsibility, safety and security at home and around the world, and the investments needed to continue our equitable growth and build a better America,” Biden said in a statement.Billionaire wealth grew significantly during the coronavirus pandemic, helped by soaring share prices and a tax regime that charges investors less on their gains than those taxed on their income.“In 2021 alone, America’s more than 700 billionaires saw their wealth increase by $1tn, yet in a typical year, billionaires like these would pay just 8% of their total realized and unrealized income in taxes. A firefighter or teacher can pay double that tax rate,” the White House factsheet notes.Under the plan households worth more than $100m would have to give detailed accounts to the Internal Revenue Service of how their assets had fared over the year. Those who pay less than 20% on those gains would then be subject to an additional tax that would take their rate up to 20%.The Biden administration calculates that the tax would affect only the top 0.01% of American households, those worth over $100m, and that more than half the revenue would come from households worth more than $1bn.The budget also looks set to tackle another issue that some economists have argued contributes to widening income inequality: share buybacks.In recent years cash-rich companies including Apple, Alphabet, Meta and Microsoft, have used their funds to buy back huge quantities of their own shares, boosting their share price. Last year companies in the S&P 500 bought back a record $882bn of their own shares and Goldman Sachs estimates that figure will rise to $1tn this year.Critics say that the purchases divert money from hiring new staff, raising wages and research and development.Research by the Securities and Exchange Commission (SEC) shows that there is “clear evidence that a substantial number of corporate executives today use buybacks as a chance to cash out”.The Biden proposal would stop executives from selling their shares for three years after a buyback is announced.Biden attempted to impose a 1% tax on share buybacks last year but the proposal failed in Congress. Both Biden’s billionaire tax and the share buyback proposal will also face tough opposition in Congress.TopicsUS taxationBiden administrationUS politicsUS economyJoe BidenUS domestic policynewsReuse this content More

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      US not optimistic about Ukraine talks as Zelenskiy ups pressure on Biden

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      US not optimistic about Ukraine talks as Zelenskiy ups pressure on Biden
      Ukraine president raises specter of ‘third world war’
      Biden pressed to increase military aid ahead of Nato visit
      Ukraine – live coverage
      Joe Biden’s ambassador to the United Nations warned on Sunday there was little immediate hope of a negotiated end to the war in Ukraine, as pressure continued to build on the US president ahead of a crucial Nato summit in Europe this week.‘Tucker the Untouchable’ goes soft on Putin but remains Fox News’s biggest powerRead moreLinda Thomas-Greenfield was reacting on CNN’s State of the Union to an interview with Volodymr Zelenskiy in which the Ukrainian president told the same network only talks would end the war and its devastating toll on civilians.“We have to use any format, any chance, to have the possibility of negotiating, of talking to [Russian president Vladimir] Putin,” Zelenskiy told Fareed Zakaria, the host of GPS. “If these attempts fail, that would mean that this is a third world war.”Thomas-Greenfield said she saw little chance of a breakthrough.“We have supported the negotiations that President Zelenskiy has attempted with the Russians, and I use the word attempted because the negotiations seem to be one-sided, and the Russians have not leaned in to any possibility for a negotiated and diplomatic solution,” she said.“We tried before Russia decided to move forward in this brutal attack on Ukraine and those diplomatic efforts were not responded to well by the Russians, and they’re not responding now. But we’re still hopeful that the Ukrainian effort will end this brutal war.”The Nato secretary general, Jens Stoltenberg, told NBC’s Meet the Press: “Turkey is doing some real effort to try to facilitate, support talks between Russia and Ukraine. It’s far too early to say whether these talks can lead to any concrete outcome.”Biden, who faces growing dissatisfaction over his approach to the war, will travel to Brussels on Thursday. He will hear a proposal from Poland for Nato to send a peacekeeping force into Ukraine, something Thomas-Greenfield said was unlikely.“I can’t preview what decisions will be made and how Nato will respond to the Polish proposal,” she said. “What I can say is American troops will not be on the ground in Ukraine at this moment. The president has been clear on that.“Other Nato countries may decide that they want to put troops inside of Ukraine, that will be a decision that they have made. We don’t want to escalate this into a war with the United States but we will support our Nato allies.”Thomas-Greenfield was asked about reports that thousands of residents of the besieged city of Mariupol have been deported to Russia.“I’ve only heard it,” she said. “I can’t confirm it. But I can say it is disturbing. It is unconscionable for Russia to force Ukrainian citizens into Russia and put them in what will basically be concentration and prisoner camps.”Republicans were critical of the pace and content of US support for Ukraine. Following Zelenskiy’s address to Congress on Wednesday, the White House announced $800m in military aid, following a $13.6bn package. But Biden has rejected a no-fly zone and the transfer of Polish Mig fighter jets.“The president has had to be pushed and pulled to where he is today,” the Wyoming Republican senator John Barasso told ABC’s This Week.“It was Congress that brought about sanctions, that brought about the ban on Russian oil, that brought about weapons and all of this big aid package. So far the administration has only released $1bn of that. We might not have been in this situation if they had done punishing sanctions before the tanks began to roll.”Speaking to CBS’s Face the Nation, the Senate minority leader, Mitch McConnell, said he believed Biden “needs to step up his game”.The president, McConnell said: “has generally done the right thing but never soon enough. I am perplexed as to why we couldn’t get the Polish-Russian Migs into the country.”McConnell added that Biden should visit friendly countries close to the conflict zone, such as Romania, Poland, and the Baltic nations.“They’re right on the frontlines and need to know that we’re in this fight with them to win,” he said.McConnell also condemned Republican extremists who have opposed support for Ukraine, such as the North Carolina congressman Madison Cawthorne, who has called Zelenskiy “a thug”.“There are some lonely voices out there who are in a different place,” McConnell said.Concern is rising among Biden’s allies. Dick Durbin of Illinois, the Democratic Senate whip, reiterated the call to approve air support for Ukraine.“We’re asking for one-third of the Polish air force to be sent into Ukraine,” he told ABC. The people of Poland, of course, want to make certain that they’re safe. They’re only a few miles away from the devastation that’s going on in Ukraine.“There are other ways for us to provide surface-to-air missiles and air defenses that will keep the Russians at bay in terms of their aerial attacks. There are ways to do that that are consistent with the Nato alliance and would not jeopardise expanding this into world war three or even worse.”Marek Magierowski, the Polish ambassador to the US, stressed that the proposal for a peacekeeping force in Ukraine was only “a preliminary concept”.“We can’t take any decisions unilaterally, they have to be taken by all Nato members,” he told CNN, adding: “If there is an incursion into Nato territory, I believe that Russia can expect a very harsh response on the part of our alliance.”Zelenskiy lamented the provision only of economic and limited military support.“If we were a Nato member, a war wouldn’t have started,” he said. “If Nato members are ready to see us in the alliance, do it immediately because people are dying on a daily basis.“But if you are not ready to preserve the lives of our people, if you just want to see us straddle two worlds, if you want to see us in this dubious position where we don’t understand whether you can accept us or not, you cannot place us in this situation, you cannot force us to be in this limbo.”Zelenskiy, however, appeared to acknowledge last week that Ukraine would not join Nato.Marina Ovsyannikova, Russian TV protester, decries Putin propagandaRead moreOn CBS’s Face the Nation, the US defense secretary, Lloyd Austin, said the use of chemical weapons by Russia, which many analysts predict, would produce a “significant reaction” from the US and the international community.On NBC, Stoltenberg said the use of chemical weapons “would be a blatant and brutal violation of international law”. But he would not say such an outcome would change Nato policy towards intervention.Biden this week spoke to the Chinese president, Xi Jinping, seeking to prevent support for Russia. The Chinese ambassador to the US, Qin Gang, spoke to CBS.He said: “What China is doing is sending food, medicine, sleeping bags and baby formula, not weapons and ammunition to any party.”Gang also said Chinese condemnation of the Russian invasion, for which some have called, would not “solve the problem”.“I would be surprised if Russia will back down by condemnation,” he said.In Ukraine, fighting continues. The retired US army general and former CIA director David Petraeus told CNN the conflict had reached “a bloody stalemate, with lots of continued damage on both sides, lots of destruction, especially from the Russians”.TopicsUkraineJoe BidenBiden administrationUS foreign policyUS national securityUS politicsUS CongressnewsReuse this content More

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      Republican Hawley’s attack on supreme court nominee Jackson is wrong, says senator

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      Republican Hawley’s attack on supreme court nominee Jackson is wrong, says senatorSenate judiciary committee chair Dick Durbin says Hawley’s attacks should be ignored in confirmation hearings this week The Missouri Republican Josh Hawley is wrong to attack Ketanji Brown Jackson, Joe Biden’s supreme court nominee, and should be ignored in confirmation hearings this week, the Senate judiciary chair said.How Ketanji Brown Jackson became Biden’s supreme court nominee – podcastRead moreHawley, the Illinois Democrat Dick Durbin said, is “part of the fringe within the Republican party … a man who was fist-bumping the murderous mob that descended on the Capitol on 6 January of the last year.“He doesn’t have the credibility he thinks he does.”If confirmed, Jackson will be the first Black woman on the court. If Democrats hold their 50 votes she will be installed, via Kamala Harris’s vote as vice-president.Jackson has attracted Republican support before and some have indicated they may back her this time. Jackson’s confirmation will not affect the balance of a court which conservatives dominate 6-3, as she will replace another liberal, the retiring Stephen Breyer.Hawley is however one of several hard-right members of the judiciary committee, alongside Ted Cruz of Texas and Tom Cotton of Arkansas, to harbour presidential ambitions. Such senators could see attacking a Biden nominee as a way to appeal to supporters.This week, in tweets echoed by the Republican National Committee, Hawley highlighted a potential line of attack.“I’ve noticed an alarming pattern when it comes to Judge Jackson’s treatment of sex offenders, especially those preying on children,” Hawley said.He did not raise the issue when he questioned Jackson last year, before voting against her confirmation to an appeals court. The White House said the senator was pushing “toxic and weakly presented misinformation”.Jackson sat on the US Sentencing Commission, an agency meant to reduce disparity in federal prison sentences. The sentencing expert Douglas Berman, an Ohio State law professor, has said her record shows she is skeptical of the range of sentences recommended for child pornography cases, the subject seized upon by Hawley.“But so too were prosecutors in the majority of her cases and so too are district judges nationwide,” Berman wrote.Durbin told ABC’s This Week: “As far as Senator Hawley is concerned, here’s the bottom line – he’s wrong. He’s inaccurate and unfair in his analysis.“Judge Jackson has been scrutinised more than any person I can think of. This is her fourth time before the Senate judiciary committee. In three previous times, she came through with flying colors and bipartisan support, the last time just last year.“And now Senator Hawley is making these charges that came out of nowhere. The independent fact checkers … have discredited his claims already. They should have. There’s no truth to what he says.“And he’s part of the fringe within the Republican party. This was a man who was fist-bumping the murderous mob that descended on the Capitol on 6 January of last year. He doesn’t have the credibility he thinks he does.”This week, Politico demanded Hawley stop using for fundraising purposes a picture of his famous raised-fist salute to protesters before the deadly attack on the Capitol by Trump supporters. Hawley indicated that he would not stop using the image.12:30PM: Senator Josh Hawley pumps his fist at pro-Trump crowd gathered at the east side of the Capitol before heading into the joint session of Congress. #Jan6NeverAgain #TheBigLie pic.twitter.com/rEFsfLY4x9— The Lincoln Project (@ProjectLincoln) April 16, 2021
      On ABC, John Barrasso of Wyoming, a member of Senate Republican leadership, was asked if Hawley was guilty of “character assassination” in his attack on Jackson.“The whole process is going to be fair, respectful and thorough,” Barrasso said, adding that he found Jackson “clearly, very intelligent”.Using a key Republican attack line in an election year, Barrasso added: “Going through the record, there are some concerns that people have about her being perceived as soft on crime. That’s all going to come out with the hearings but they’re going to be respectful, they’re going to be thorough and they’re going to be fair.”Asked if Hawley’s attack was fair, Barrasso said: “Well, he’s going to have his opportunity to question the judge as will all the members of the committee.“The last time we had a hearing with [Brett] Kavanaugh, he was accused of being a serial rapist with no evidence whatsoever. So, I think we’re going to have a fair process and a respectful process, unlike what the Democrats did to Justice Kavanaugh.”In fact Kavanaugh – who denied allegations of sexual assault detailed by an alleged victim in confirmation hearings – was the second of three justices installed by Republicans under Donald Trump. The third, Amy Coney Barrett, was jammed on to the court shortly before the 2020 election, after the death of Ruth Bader Ginsberg.Mitch McConnell, the Republican Senate minority leader, told CBS’s Face the Nation he and Jackson “had a very good conversation”. He asked her, he said, to “defend the court” against those who say Democrats should expand it beyond nine justices to redress its ideological balance.Mug shot: Republican Josh Hawley told to stop using January 6 fist salute photoRead more“Ruth Bader Ginsburg and Justice Breyer both publicly opposed court packing,” McConnell said, “that is trying to increase the number of members in order to get an outcome you like. That would have been an easy thing for [Jackson] to do, to defend the integrity of the court. She wouldn’t do that.”The man who drastically shifted the balance of the court in part by denying a nomination to Barack Obama in 2016 and swiftly confirmation of Amy Coney Barrett four years later also said: “I haven’t made a final decision as to how I’m gonna vote.”Hearings begin on Monday. Jackson is expected to make a statement and answer questions. Harvard-trained, she spent two years as a federal public defender. That makes her the first nominee with significant criminal defense experience since Thurgood Marshall, the first Black American on the court.The American Bar Association has given Jackson its highest rating, unanimously “well qualified”.Janette McCarthy Wallace, general counsel of the National Association for the Advancement of Colored People, said she was excited to see a Black woman on the verge of a seat.“Representation matters,” Wallace said. “It’s critical to have diverse experience on the bench. It should reflect the rich cultural diversity of this country.”
      The Associated Press contributed to this report
      TopicsKetanji Brown JacksonUS supreme courtUS constitution and civil libertiesLaw (US)RepublicansDemocratsUS politicsnewsReuse this content More

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      US likely to see Covid cases rise from Omicron subvariant, Fauci says

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      US likely to see Covid cases rise from Omicron subvariant, Fauci saysBiden’s chief medical adviser also says the US is ‘clearly going in the right direction’ on the pandemic The US is likely to see an increase in Covid cases like that in Europe and the UK thanks to the BA.2 virus subvariant but not a dangerous surge, Anthony Fauci said on Sunday.Warning signs for US as Covid cases rise in Europe Read moreJoe Biden’s chief medical adviser also said the US was “clearly going in the right direction” on the coronavirus pandemic.BA.2, Fauci told ABC’s This Week, “has a degree of transmission advantage over the original Omicron [variant], but not multifold advantage. So, it’s about 50% to 60% or so more transmissible, which means ultimately it might take over as a dominant variant.“Clearly, throughout the world it’s about 80-plus percent, 85% of the isolate. In the United States, it’s still somewhere around 30%.“So it does have an increased transmission capability. However, when you look at the cases, they do not appear to be any more severe and they do not appear to evade immune responses either from vaccines or prior infection.“So the bottom line is we likely will see an uptick in cases as we’ve seen in the European countries, particularly the UK, where … they have BA.2. They have a relaxation of some restrictions such as indoor masking and there’s a waning of immunity.“Hopefully, we won’t see a surge. I don’t think we will. The easiest way to prevent that is to continue to get people vaccinated. And for those who have been vaccinated, to continue to get them boosted.”Fauci said he did not see any reason to reimpose public health restrictions relaxed under a federal approach meant to focus on areas with pressure on hospital systems.“But you always have to have the flexibility,” he said.“Remember, when the [Centers for Disease Control and Prevention] came out with the modification of their metrics, which would lead to the guidelines of what regions or counties in the country should have a masking indoors, they made it very clear that … if we do see a significant surge, particularly one that might result in increased hospitalisations, we have to be prepared to pivot and perhaps reinstitute some of those restrictions.“But right now, at this point, I don’t see that.”More than 970,000 people have died of Covid-19 in the US. Fauci said vaccination and booster rates still needed to be improved and said Congress should build-up supplies of anti-virals, tests and booster shots.“We just can’t stand still,” he said, “particularly as we appear to be in somewhat of a lull … where cases continue to come down, deaths continue to come down and hospitalisations [too].‘Mosquito in a nudist colony’: Republican Ron Johnson targets Fauci and Hunter BidenRead more“That’s no time at all to declare victory because this virus has fooled us before, and we really must be prepared for the possibility that we might get another variant and we don’t want to be caught flatfooted on that.”Fauci, 81 and the director of the National Institute of Allergy and Infectious Disease, has served seven presidents since 1984. He has said he will consider retiring when the pandemic is done.Asked if he was any nearer such a decision, he told ABC: “I’m not so sure. I want to make sure we’re really out of this before I really seriously consider doing anything different.“We’re still in this. We have a way to go. I think we’re clearly going in the right direction. Hope we stay that way.”TopicsAnthony FauciOmicron variantCoronavirusInfectious diseasesUS politicsBiden administrationnewsReuse this content More

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      ‘Mosquito in a nudist colony’: Republican Ron Johnson targets Fauci and Hunter Biden

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      ‘Mosquito in a nudist colony’: Republican Ron Johnson targets Fauci and Hunter BidenWisconsin senator says if GOP retakes control it will use committees to move against Democrats and Biden Hunter Biden and Anthony Fauci will be prime targets of Senate Republicans should the party win control in November, a senior senator said.Star Trek makes Stacey Abrams president of United Earth – and stokes conservative angerRead moreAsked by the Hill what he would want to investigate should he control a committee with subpoena power, Ron Johnson of Wisconsin said: “Like everything? It’s like a mosquito in a nudist colony, it’s a target-rich environment.”Fauci, 81, has served seven presidents as head of the National Institute of Allergy and Infectious Disease. He has played a lead role in the response to the coronavirus pandemic, which has killed more than 970,000 in the US. He has become a hate figure on the political right, even leading to threats against his security.Fauci suggested this week he could soon retire, telling ABC News: “I’d love to spend more time with my wife and family. That would really be good.”But high-profile clashes with Republicans including Senator Rand Paul of Kentucky have shown Fauci is likely to remain a prime target for GOP attacks.Paul is in line to chair the Senate health committee. In one headline-making clash with Fauci, in July 2021, Joe Biden’s chief medical adviser told the hectoring senator: “You do not know what you are talking about.”Earlier this year, Paul said: “If we win in November, if I’m chairman of a committee, if I have subpoena power, we’ll go after every one of [Fauci’s] records.”Johnson, who has advanced Covid conspiracy theories and advocated unproven treatments, told the Hill: “There’s so much more in terms of what happened with our federal health agencies that we need to explore.”02:49Hunter Biden, 52, is the president’s surviving son. His business activities, particularly regarding Ukraine, have long been a Republican priority. Donald Trump was impeached for the first time for withholding military aid to Kyiv while seeking dirt on the Bidens.A laptop once belonging to Hunter Biden has re-emerged as the subject of scrutiny, particularly after the New York Times this week reported on his tax affairs.In 2020, Johnson played a prominent role in a Republican investigation which counted Hunter Biden among its subjects. Democrats then won two run-offs in Georgia, to control the 50-50 Senate via the vote of the vice-president, Kamala Harris.Johnson will seek a third term in November but faces a tough fight in Wisconsin.“I’d kind of like to wrap that up,” he told the Hill of his investigation of Hunter Biden. “We’ve been trying to get his travel records for a couple of years now.”Other areas of likely Republican attack, the Hill said, included border security and immigration and the US withdrawal from Afghanistan.A spokesman for the Democratic Senatorial Campaign Committee said Republicans were preparing to pursue a “toxic agenda”.Johnson returned to his nudist camp analogy.“I’ll be that mosquito,” he said. “Hard to tell what targets I might pick. They’ll all be juicy.”TopicsRepublicansUS SenateUS CongressUS politicsBiden administrationJoe BidenAnthony FaucinewsReuse this content More

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      Big oil could bring US gas prices down but won’t – so hit it with a windfall tax | Robert Reich

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      Big oil could bring US gas prices down but won’t – so hit it with a windfall taxRobert ReichIn the US, in times of crisis, the poor pay the price and the rich cash in. Democrats know it doesn’t have to be this way This morning I filled my car with gas, costing almost six dollars a gallon. My car is a Mini Cooper I bought years ago, partly because it wasn’t a gas-guzzler. Now it’s guzzling dollars.Putin and Trump have convinced me: I was wrong about the 21st century | Robert ReichRead moreWhen I consider what’s happening in Ukraine, I say what the hell. It’s a small sacrifice.Yet guess who’s making no sacrifice at all – in fact, who’s reaping a giant windfall from this crisis?Big oil has hit a gusher. Even before Vladimir Putin’s war, oil prices had begun to rise due to the recovery in global demand and tight inventories.Last year, when Americans were already struggling to pay their heating bills and fill up their gas tanks, the biggest oil companies (Shell, Chevron, BP, and Exxon) posted profits totaling $75bn. This year, courtesy of Putin, big oil is on the way to a far bigger bonanza.How are the oil companies using this windfall? I can assure you they’re not investing in renewables. They’re not even increasing oil production.As Chevron’s top executive, Mike Wirth, said in September, “We could afford to invest more” but “the equity market is not sending a signal that says they think we ought to be doing that.”Translated: Wall Street says the way to maximize profits is to limit supply and push up prices instead.So they’re buying back their own stock in order to give their stock prices even more of a boost. Last year they spent $38bn on stock buybacks – their biggest buyback spending spree since 2008. This year, thanks largely to Putin, the oil giants are planning to buy back at least $22bn more.Make no mistake. This is a direct redistribution from consumers who are paying through the nose at the gas pump to big oil’s investors and top executives (whose compensation packages are larded with shares of stock and stock options).Though it’s seldom discussed in the media, lower-income earners and their families bear the brunt of the burden of higher gas prices. Not only are lower-income people less likely to be able to work from home, they’re also more likely to commute for longer distances between work and home in order to afford less expensive housing.Big oil companies could absorb the higher costs of crude oil. The reason they’re not is because they’re so big they don’t have to. They don’t worry about losing market share to competitors. So they’re passing on the higher costs to consumers in the form of higher prices, and pocketing record profits.It’s the same old story in this country: when crisis strikes, the poor and working class are on the frontlines while the biggest corporations and their investors and top brass rake it in.What to do? Hit big oil with a windfall profits tax.The European Union recently advised its members to seek a windfall profits tax on oil companies taking advantage of this very grave emergency to raise their prices.Democrats just introduced similar legislation here in the US. The bill would tax the largest oil companies, which are recording their biggest profits in years, and use the money to provide quarterly checks to Americans facing sticker shock as inflation continues to soar.It would require oil companies producing or importing at least 300,000 barrels of oil per day to pay a per-barrel tax equal to half the difference between the current price of a barrel and the average price from the years 2015 to 2019.This is hardly confiscatory. Those were years when energy companies were already recording large profits. Quarterly rebates to consumers would phase out for individuals earning more than $75,000 or couples earning $150,000.Republicans will balk at any tax increase on big oil, of course. They and the coal-industry senator Joe Manchin even tanked the nomination of Sarah Bloom Raskin to the Fed because she had the temerity to speak out about the systemic risks that climate change poses to our economy.But a windfall profits tax on big oil is exactly what Democrats must do to help average working people through this fuel crisis. It’s good policy, it’s good politics and it’s the right thing to do.
      Robert Reich, a former US secretary of labor, is professor of public policy at the University of California at Berkeley and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His new book, The System: Who Rigged It, How We Fix It, is out now. He is a Guardian US columnist. His newsletter is at robertreich.substack.com
      TopicsOil and gas companiesOpinionOilCommoditiesEnergy industryUkraineRussiaUS domestic policycommentReuse this content More

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      The uphill battle to resurrect the US child tax credit that lifted millions from poverty

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      The uphill battle to resurrect the US child tax credit that lifted millions from poverty Monthly payments became a lifeline for many families, and their lapse had a devastating effect, but the policy seems to have no path forward in the SenateIf the negotiations over Democrats’ Build Back Better Act had gone differently, tens of millions of American families would have received checks on Tuesday. Instead, for the third month in a row, the monthly payments from the expanded child tax credit were not distributed.The monthly checks, which were approved last year as part of Joe Biden’s coronavirus relief package, had become a lifeline for many families struggling to financially recover from the pandemic. But the payments came to an end in December, after Democrats failed to pass their Build Back Better Act, which would have extended the policy.Those monthly payments helped temporarily lift millions of American children out of poverty, and the policy’s lapse has had a devastating effect. According to a report from Columbia University’s Center on Poverty and Social Policy, 3.7 million more American children were experiencing poverty in January, after the monthly payments ended. The increase was disproportionately high among Black and Latino children.Progressives have continued to advocate for the expanded credit, insisting an extension of the monthly payments should be included in any social spending package that Democrats can get through Congress.Progressive Democrats set out list of executive orders to push Biden agendaRead moreBut the policy appears to have no path forward in the evenly divided Senate, underscoring Democrats’ challenges in trying to advance Biden’s economic agenda. Some Democrats fear that failing to extend the expanded credit will further damage the party’s prospects in the midterm elections, making it more difficult for candidates to make a case for re-election to voters.The expanded tax credit was initially enacted through the American Rescue Plan, which Biden signed into law last March. The new policy increased the tax benefit from $2,000 a year to a maximum of $3,600 a year for children aged five or younger and a maximum of $3,000 a year for children between the ages of six and 17. The credit allowed families to collect half of the benefit through monthly checks, which were distributed between July and December of last year. The policy also made the tax credit fully refundable, meaning more low-income parents could access the funds. In December, the last month that the payments were sent out, more than 36 million American households received checks.“Talk about a program that has shown its worth in spades. So effective, so necessary. We’ve seen the results immediately,” Pramila Jayapal, chair of the Congressional Progressive Caucus, said on Thursday. Jayapal even invited a Seattle mother of three who benefited from the monthly payments, Leanne Do, as her “virtual guest” to the State of the Union earlier this month.Despite the clear impact of the payments and progressives’ passion for the policy, Democrats appear to be at an impasse when it comes to continuing the monthly checks. The version of the Build Back Better Act that passed the House in November included a one-year extension of the expanded child tax credit. But that bill has stalled in the Senate because of Senator Joe Manchin’s opposition to the proposal.“It’s a question of what can get 50 votes. And unfortunately, we’re still coming up against that barrier,” Jayapal said. “I don’t know what to say other than it’s incredibly frustrating to a lot of us.”Democrats are now trying to resurrect components of the Build Back Better Act that can win Manchin’s approval, specifically the provisions aimed at combating climate change and lowering prescription drug costs. But as the party cautiously approaches negotiations again, there have been conspicuously few mentions of extending the expanded child tax credit.In his State of the Union speech, Biden emphasized the importance of enacting various pieces of his economic agenda, including strengthening domestic supply chains and investing in clean-energy sources. In the hour-long speech, Biden devoted only one half of one sentence to the expanded child tax credit.“Raise the minimum wage to $15 an hour and extend the child tax credit, so no one has to raise a family in poverty,” Biden told lawmakers.On Monday, the president acknowledged the challenges he has faced in trying to extend the expanded credit. “It was something we should be doing again, but I’m having trouble getting it passed again,” Biden said at the National League of Cities Congressional City Conference.That trouble is largely thanks to one member of Biden’s own party. Manchin announced in December that he would not support the Build Back Better Act, saying the bill’s $1.7tn price tag was too much to stomach when US inflation has hit a 40-year high. Privately, Manchin also told colleagues that he feared parents would waste the money from the expanded child tax credit on drugs, according to HuffPost. (Surveys show parents report spending the extra money on food, rent and utilities.)Progressives in Congress are continuing to fight for the policy, but they are clear-eyed about the odds of passing an extension with the narrowest of majorities in the Senate.“As far as the path forward, I would love to say yes, but at this point, I don’t see it, and I haven’t heard a lot of conversations about how to get there,” said the progressive congresswoman Cori Bush, who noted that many of her constituents were “devastated” when the payments ended.If the policy is not reinstated, it could deal another blow to Democrats’ already bleak prospects in the midterm elections. Republicans are currently favored to retake control of the House, and the failure to pass the Build Back Better Act – and specifically the extension of the expanded child tax credit – may make voters even less inclined to re-elect Democrats.Party leaders have tried to frame Congress’s failure to extend the payments as a reflection on Republicans. Chris Taylor, a spokesperson for the Democratic Congressional Campaign Committee, noted that not a single Republican supported the American Rescue Plan, which initiated the monthly payment.“We are going to make sure the record is clear for voters: House Democrats delivered for families when things got tough,” Taylor said. “Every single Republican in Congress voted against helping your family.”With the Build Back Better Act stalled, progressives are also trying to find other avenues for helping families who are financially struggling. On Thursday, the Congressional Progressive Caucus released a list of executive orders that Biden should sign to advance Democrats’ policy agenda. The list includes demands to lower prescription drug costs, expand overtime eligibility and cancel federal student loan debt, among other suggestions.Jayapal pledged that progressives would continue to push for the passage of the Build Back Better Act, including an extension of the expanded child tax credit. But she argued the proposed executive orders represented a strong starting point for helping average Americans’ monthly budgets, which could in turn boost Democrats’ chances in the midterms.“We’ve got to make sure that we’re addressing the increase in housing costs, in childcare, in gas prices, and all the things that we’re seeing right now – and addressing that for people who are on the margins,” Jayapal said on Thursday. “Let’s deliver some relief quickly for people. And yes, anything we do between now and November helps us.”TopicsBiden administrationPovertyUS politicsnewsReuse this content More

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      Progressive Democrats set out list of executive orders to push Biden agenda

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      Progressive Democrats set out list of executive orders to push Biden agendaCongressional Progressive Caucus urges president to bypass legislative logjam and give Democrats record to campaign on The leftwing Congressional Progressive Caucus unveiled its highly anticipated list of suggested executive orders on Thursday, outlining a strategy for Joe Biden to advance Democrats’ policy priorities in the US while much of his legislative agenda has stalled on Capitol Hill.The move reflects pressure from the left of the Democratic party to try to keep Biden pushing an ambitious program of action, despite setbacks and as November’s midterm elections are widely expected to favor a resurgent Republican party.Manchin ‘very reluctant’ on electric cars in ominous sign for Biden’s climate fightRead moreThe list covers a wide range of progressive wishlist items, including lowering healthcare costs, canceling federal student loan debt and reducing America’s dependence on fossil fuels. The agenda also calls for raising wages by increasing the threshold to be eligible for overtime pay and reducing police violence by establishing national standards for law enforcement officers.“Taken together, these actions will have an immediate and meaningful impact on people’s lives: lowering costs and raising wages for working people to provide urgently needed economic relief, advancing racial and gender equity by investing in communities that have historically been neglected, and delivering on our promises,” said Congresswoman Pramila Jayapal, chair of the CPC. The list was crafted in consultation with the 98 members of the CPC, as well as a number of progressive grassroots groups. Dozens of progressive organizations have endorsed the agenda, calling on Biden to act quickly to sign the suggested executive orders.“As we face a historic crossroad in the fight to protect democracy and defeat white supremacy, it’s beyond time for Biden to use the full powers of the presidency to deliver for the people who elected him and address the interlocking crises of our times,” said Lauren Maunus, advocacy director for the climate group Sunrise Movement. “If he doesn’t, Biden risks not only alienating his own base, but failing to stop the worst of the climate crisis while he had the chance.”Jayapal said the CPC and the White House have had many conversations over the past several months as the caucus worked to develop its list, with the hope of avoiding potential legal challenges to the orders. Jayapal told reporters she planned to discuss the newly released agenda with Biden as early as this week.“The reason it took us so long to put this together, from when we first started talking about it at the end of December, is because we did want to make sure that these are things that the White House can do,” Jayapal said on a press call on Thursday. If Biden takes the CPC’s advice and signs more executive orders in the coming months, they believe it could help Democrats’ prospects in the midterm elections this November.As of now, Republicans are heavily favored to retake control of the House and possibly the Senate as well. With the Build Back Better Act stalled in the Senate, executive action may be Democrats’ best hope of enacting meaningful change between now and November, making it easier for members to campaign for re-election.“If we cancel student debt, that would be a huge thing all across this country,” the progressive Congresswoman Cori Bush said on Thursday. “We keep saying that Democrats deliver, but people don’t know we’re delivering if they can’t feel that difference, and people need to feel the difference.”Jayapal emphasized progressives were not giving up on implementing portions of the Build Back Better Act, the $1.7tn spending package that includes significant investments in healthcare, childcare and climate-related initiatives. But she argued the executive orders proposed by the CPC could provide immediate aid to families struggling to financially recover from the coronavirus pandemic, while also boosting Democrats’ midterm prospects.“We’ve got to make sure that we’re addressing the increase in housing costs, in childcare, in gas prices, and all the things that we’re seeing right now – and addressing that for people who are on the margins,” Jayapal said. “Let’s deliver some relief quickly for people. And yes, anything we do between now and November helps us.”TopicsDemocratsBiden administrationUS CongressUS politicsUS domestic policynewsReuse this content More