Politics
Biden to Include Minimum Tax on Billionaires in Budget Proposal
WASHINGTON — The White Home will ask Congress on Monday to cross a brand new minimal tax on billionaires as a part of a finances proposal supposed to revitalize President Biden’s home agenda and scale back the nationwide deficit.
The tax would require that American households price greater than $100 million pay a tax price of at the least 20 % on their full earnings, in addition to unrealized positive factors within the worth of their liquid belongings, comparable to shares, bonds and money, which might accumulate worth for years however are taxed solely when they’re bought.
Mr. Biden’s proposal to impose a tax on billionaires is the primary time he has explicitly known as for a wealth tax. Whereas many in his social gathering have advocated taxes that concentrate on a person’s wealth — not simply earnings — Mr. Biden has largely steered away from such proposals in favor of accelerating the highest marginal earnings tax price, imposing the next tax on capital positive factors and estates, and elevating taxes on firms.
The “Billionaire Minimal Revenue Tax” would apply solely to the highest one one-hundredth of 1 % of American households, and over half of the income would come from these price greater than $1 billion. These already paying greater than 20 % wouldn’t owe any further taxes, though these paying under that stage must pay the distinction between their present tax price and the brand new 20 % price.
The funds of Mr. Biden’s minimal tax would additionally rely towards the tax that billionaires would ultimately have to pay on unrealized earnings from belongings which are taxed solely when they’re bought for a revenue.
The tax proposal will probably be a part of the Biden administration’s finances request for the following fiscal yr, which the White Home plans to launch on Monday. In a doc outlining the minimal tax, the White Home known as it “a prepayment of tax obligations these households will owe after they later notice their positive factors.”
“This method signifies that the very wealthiest Individuals pay taxes as they go, similar to everybody else,” the doc stated.
Because the administration grapples with worries over rising inflation, the White Home additionally launched a separate doc on Saturday saying that Mr. Biden’s finances proposal would lower federal deficits by a complete of greater than $1 trillion over the following decade.
The thought of imposing a wealth tax has gained traction since Mr. Biden was elected as Democrats have appeared for methods to fund their sweeping local weather and social coverage agenda and be sure that the wealthiest Individuals are paying their fair proportion.
Senator Elizabeth Warren, Democrat of Massachusetts, and Senator Ron Wyden, Democrat of Oregon and the chairman of the Finance Committee, launched separate proposals final yr that may tax the wealthiest, albeit in numerous methods. Ms. Warren had championed the thought of a wealth tax in her unsuccessful presidential marketing campaign.
The choice by the administration to name for a wealth tax additionally displays political realities over tips on how to finance Mr. Biden’s financial agenda.
Average Democrats, together with Senator Kyrsten Sinema of Arizona, have balked at elevating the company tax price or lifting the highest marginal earnings tax price to 39.6 % from 37 %, leaving the social gathering with few choices to boost income.
Nonetheless, Senator Joe Manchin III, Democrat of West Virginia, slammed the thought of taxing billionaires after Mr. Wyden’s proposal to take action was launched, though Mr. Manchin has since urged he might help some sort of billionaires’ tax.
Authorized questions on such a tax additionally abound, notably whether or not a tax on wealth — reasonably than earnings — is constitutional. If Congress approves a wealth tax, there was hypothesis that rich Individuals might mount a authorized problem to the trouble.
Politics
Texas could bus migrants directly to ICE for deportation instead of sanctuary cities under proposed plan
Texas could implement a plan to bus migrants directly to U.S. Immigration and Customs Enforcement (ICE) in an effort to get them processed for deportation, according to media reports.
The move would be a departure from the state’s program, part of Operation Lone Star, that has bussed thousands of migrants to sanctuary cities, a source told the New York Post. It has yet to be approved by Gov. Greg Abbott.
Fox News Digital has reached out to Abbott’s office and ICE.
“We are always going to be involved in border security so long as we’re a border state,” a Texas government source told the newspaper. “We spent a lot of taxpayer money to have the level of deterrent that we have on the border, and we can’t just walk away.”
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Abbott has been especially aggressive in combating illegal immigration, bussing migrants to blue cities in an effort to bring attention to the border crisis. Under the proposed plan, buses chartered by Texas from border cities will be taken to federal detention centers to help ICE agents process migrants quickly, the Post reported.
Texas has been in a legal fight with the Biden administration over its efforts to curb illegal immigration. On Wednesday, an appeals court ruled that the state has the right to build a razor wire border wall to deter migrants.
Officials have also offered land to the incoming Trump administration to build deportation centers to hold illegal immigrant criminals.
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“My office has identified several of our properties and is standing by ready to make this happen on Day One of the Trump presidency,” Texas Land Commissioner Dawn Buckingham said during a visit to the border Tuesday.
Authorities have also warned of unaccompanied migrant children being caught near the border. On Thursday, a 10-year-old boy from El Salvador told state troopers in Maverick County, Texas, that he had been lost and left behind by a human smuggler.
The boy was holding a cellphone and crying, Texas Department of Public Safety Lt. Chris Olivarez posted on X. The child said his parents were in the U.S.
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On Sunday, troopers encountered an unaccompanied 2-year-old girl from El Salvador holding a piece of paper with a phone number and her name. She told authorities that her parents were also in the U.S.
That morning, state troopers also encountered a group of 211 illegal immigrants in Maverick County. Among the group were 60 unaccompanied children, ages 2 to 17, and six special interest immigrants from Mali and Angola.
“Regardless of political views, it is unacceptable for any child to be exposed to dangerous criminal trafficking networks,” Olivarez wrote at the time. “With a record number of unaccompanied children and hundreds of thousands missing, there is no one ensuring the safety & security of these children except for the men & women who are on the frontlines daily.”
He noted that the “reality is that many children are exploited & trafficked, never to be heard from again.”
Politics
Opinion: On homelessness, liberal California and the ultraconservative Supreme Court largely agree
What does a small, solidly Republican city in Oregon have in common with California’s largest liberal enclaves? All breathed a sigh of relief this year thanks to the far-right U.S. Supreme Court.
The court’s conservative bloc ruled in favor of the city of Grants Pass, Ore., in June, overturning a key lower court ruling on homelessness and clearing the way for local governments to crack down on sleeping in public spaces regardless of the availability of housing or shelter. California’s response to the ruling has become a vivid reminder of not just the intractability of the homelessness epidemic but also the tension between national liberal politics and local policy in Democratic-dominated states and cities.
Some 186,000 people across California lack consistent shelter. Roughly 84% of the state’s voters believe homelessness is a “very serious” problem, a Quinnipiac University poll found, and Democrats and Republicans were in similarly broad agreement on that assessment, at 81% and 85%, respectively. In that light, it’s not surprising that California officials have wasted no time since Grants Pass in implementing their preferred “solution” to the homelessness problem.
From San Diego to San Francisco, state and local workers began disassembling makeshift shelters and camps and displacing the homeless people living in them. Within days, entire blocks were remade across the state. Residents rallied to social media platforms such as Reddit and Nextdoor to exchange strategies for getting homeless encampments removed from their own neighborhoods.
Other California residents have taken the Supreme Court’s ruling and Democratic officials’ exuberant co-sign as further evidence of the nation’s growing disdain for society’s most marginalized. Reports spread of homeless people being ejected from campsites with little or no warning, their pets taken away and medications lost, among other indignities.
The American Civil Liberties Union and other advocacy groups have condemned the Grants Pass ruling. The chief executive of the National Alliance to End Homelessness said it set a “dangerous precedent.” But the precedent set by California Democrats has arguably been far more dangerous.
During the initial waves of the Golden State’s housing crisis, in the late 1970s, Democratic politicians were reluctant to be seen as overtly antagonistic to the state’s homeless people, many of them veterans of the nation’s wars in Vietnam and Korea. But as the homeless population has grown and diversified, officials have faced deepening NIMBY sentiment not just in California’s well-heeled liberal cities but also in Democratic-leaning working-class communities that increasingly experience the highest rates of homelessness and related problems such as loitering and blight. As a result, anti-homeless policies have become more politically appealing despite being painfully at odds with inclusivity and other virtues Democrats signal on the national stage.
Addressing the housing crisis has been a quintessential and enduring social justice cause for Democrats, encompassing themes that tend to unify the party, including health, economic and racial equity. According to one survey, 82% of homeless adults in California reported having experienced a serious mental health condition, and 65% had used illicit drugs at some point. The state’s Black people are disproportionately affected by homelessness: Despite making up only about 5% of California’s total population, they represent roughly 25% of its homeless people. Such statistics helped liberals frame homelessness as a product of Republican policies weakening social services and promoting unchecked capitalism.
But that view has lost support as homelessness has become more dramatic and visible over the last decade. In some of California’s liberal enclaves, homeless encampments have become full-blown tent cities. Scenes of squalor, drug use and petty crime have spawned a subculture of gonzo-style documentary videos racking up hundreds of thousands of views on YouTube. San Francisco and Los Angeles have the most prominent crises, inviting scrutiny of the latter city’s readiness to host the 2028 Olympics.
Democrats’ conundrum is whether authorities should roust, fine and imprison people residing in public spaces in the interest of answering the broader community’s quality-of-life concerns. Critics have argued that such criminalization is a cruel distraction and that more affordable housing is the only way to meaningfully address the crisis.
Gov. Gavin Newsom and his predecessor, Jerry Brown, devoted billions of dollars to homelessness prevention and affordable housing even as the homeless population generally continued to grow. Newsom was quick to seize on the conservative Supreme Court’s permission to put punishment ahead of housing, warning cities that if they don’t remove encampments, they risk losing state funding. San Francisco Mayor London Breed, who just lost a reelection bid partly because of concerns about homelessness, likewise promised to be “very aggressive” in removing encampments. Never mind that those displaced by the state’s homeless sweeps often end up occupying another nearby space and returning at a later date.
So how did we get here? California’s ruling Democrats have tried to have it all ways, largely cultivating and tolerating deeply bureaucratic housing development standards while amplifying a booming tech industry populated by employees willing to pay top dollar for homes, dramatically boosting prices. And although Newsom and others have heralded emergency housing and other measures to answer the crisis, the total capacity is far short of the unhoused population. That’s partly because new facilities are often rebuffed by cities such as the L.A. suburb of Norwalk, which recently enacted a moratorium on homeless shelters.
Reducing and preventing homelessness, whatever the underlying motivations, is one of the few civic concerns that bind the political parties together in an age of stark polarization. Beyond the obvious moral merits of the cause, it could provide a road map to arrive at bipartisan solutions for other challenges facing the state and country. Unfortunately, the consensus on homelessness is coalescing around a prescription with little chance of long-term success.
Jerel Ezell is an assistant professor of community health sciences at UC Berkeley.
Politics
Biden thankful for smooth transition of power, urges Trump to 'rethink' tariffs on Canada and Mexico
President Biden on Thanksgiving said he was thankful that the transition of power to a second Trump administration has gone smoothly, while urging the incoming commander-in-chief to “rethink” threats to impose steep tariffs on Mexican and Canadian goods.
“I hope that [President-elect Trump] rethinks it. I think it’s a counterproductive thing to do,” Biden told reporters Thursday on the island of Nantucket, Massachusetts, where he was spending the holiday with family. “We’re surrounded by the Pacific Ocean and the Atlantic Oceans and two allies — Mexico and Canada. The last thing we need to do is begin to screw up those relationships. I think that we got them in a good place.”
Earlier this week, Trump vowed to impose 25% tariffs on Mexico and Canada in an effort to get both nations to do more to stop the flow of illegal immigrants and illicit drugs into the U.S. Trump spoke with Mexican President Claudia Sheinbaum Pardo on Wednesday, and both apparently came to an understanding, he said.
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“She has agreed to stop Migration through Mexico, and into the United States, effectively closing our Southern Border,” Trump wrote on Truth Social. “We also talked about what can be done to stop the massive drug inflow into the United States, and also, U.S. consumption of these drugs. It was a very productive conversation!”
Trump also threatened to impose an additional 10% tariff on China. Biden said Chinese President Xi Jinping “doesn’t want to make a mistake.”
“I am not saying he is our best buddy, but he understands what’s at stake,” he said.
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President Biden also said Thursday that illegal border crossings have been “down considerably” since Trump’s first term in office. Trump heavily campaigned on the border crisis that exploded after Biden took office.
The president also said he was pleased with the cease-fire deal between Israel and Lebanon and that he was “very, very happy” about China releasing three Americans who were “wrongfully detained” for several years.
Regarding the transition from his presidency to a second Trump administration, Biden said he wants the process to occur without any hiccups.
“I want to make sure it goes smoothly. And all the talk about what he is going to do and not do, I think that maybe it is a little bit of internal reckoning on his part,” he said.
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