It has been over 100 days since President Joe Biden took charge of his administrative duties in the United States. The Biden administration has been highly optimistic by promising to meet an expansive agenda that includes controlling the coronavirus pandemic, enabling economic recovery, revising US climate policy and reviewing their health care system. Biden has also taken active steps to reverse Trump’s isolationist policies and his decisions, alongside catalysing the process of restoring America’s place in the international community. With only 100 days of his term completed, Biden has taken some notable steps to meet his agendas.
Within his first few days at the White House, Biden rejoined the Paris Agreement and the World Health Organisation. He rescinded Trump’s Muslim ban, which restricted immigration from a host of Muslim-majority countries. He took the liberty to address US-China relations by getting on a call with President Xi Jinping to discuss climate change, human rights violations, and trade relations. The President has made it clear to the Americans and the world that he plans on restoring America’s position in the global community and that he is determined to get rid of the isolationist policies introduced by his predecessor.
The Biden administration fulfilled their 100-day promise of providing 100 M COVID vaccinations within its first 50 days. Biden’s timing could not have been better – as infections were peaking and America’s vaccines were coming online because of Trump’s funding of Operation Warp Speed, Biden utilised the opportunity to play the hero without having to put in all the work. Moreover, he recently announced that all adults in the US will be eligible for the COVID vaccine by April 19th.
Biden is firing on all cylinders to ensure that repercussions of the pandemic can be contained, singing a $1.9 trillion relief package to fight the pandemic and restore the US economy. The relief package, currently Biden’s top priority, plans to send direct payments of up to $1,400 to most Americans. The bill also includes a $300 per week unemployment insurance boost until 6th September 2021 and steps ahead to expand the child tax credit for a year. The relief plan also allocates $25 billion into rental and utility assistance, and $350 billion into state, local and tribal relief. It puts nearly $20 billion into Covid-19 vaccinations.
Biden’s plan to reverse Trump’s tax cuts on corporations has been championed by the Left, but the effectiveness of implementing this policy needs to be carefully considered. Biden’s tax policy wants to raise the top income tax rate to 39.6% from 37% and the top corporate income tax rate to 28% from 21%. This move will allow the government to collect a tax revenue of approximately $4 trillion by 2030. President Biden claims that his administration will ensure American companies contribute tax dollars to help invest in the country’s roads, bridges, water pipes and other parts of his economic agenda. The plan detailed by the Treasury Department would make it harder for companies to avoid paying taxes on both U.S. income and profits stashed abroad.
While this move sounds good on paper, its effective implementation has several obstacles. Corporates with major accounting teams and an army of lawyers have continued to find safe havens and loopholes in tax laws to legally avoid paying taxes. A tax hike of this rate also increases the probability of tax evasion and tax fraud, which will undoubtedly lead to the creation of a larger shadow economy. Additionally, in a post covid world that has witnessed large scale unemployment, increasing taxes on corporations and high bracket earners is going to push firms to cut costs, thereby creating disincentives for hiring. The increase in taxation may also push firms to switch gears and focus more on international markets such as Hong Kong or Singapore that offer lower corporate tax rates. While progressive taxation is ideally the way to go, the Biden government must ensure that its implementation takes into account all the limitations of the current system.
The Trump administration focused on deregulation in the manufacturing sector to ensure productivity and economic efficiency, whereas Biden promises to focus on sustainable development. As part of his election campaign, Biden had released a 10-year, $1.3 trillion infrastructure plan. The plan aims to move the U.S. to net-zero greenhouse gas emissions. Biden’s climate change plan in total would cost the US approximately 2 trillion dollars, which he aims to fund by reversing Trump’s excess tax cuts on corporations and putting an end to subsidies for fossil fuels. While Trump focused on short-term economic efficiency, Biden’s plan is for the future. Switching to sustainable means of manufacturing is going to undoubtedly drive up costs for the American economy, but has the potential to create middle-class jobs and ensure environmental conservation.
Biden has had over 100 successful days since being sworn in, mainly because the bar set by his predecessor was quite low to begin with, but also because of his constructive policies. He envisions an America that will not be easy or cheap to achieve. While Biden’s plans cease to be as optimistic as “Mexico will pay for it,” they still are overreaching. The policies and infrastructural changes that Biden aims to implement would likely add to the 28 trillion dollar debt, but as long as the economy is developed in a constructive manner, there is hope for Biden’s America.
Karantaj Singh finished his undergraduate in History and International Relations. He is now pursuing a minor in Media Studies and Politics during his time at the Ashoka Scholars Program. He enjoys gaming and comics in his free time.
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