If the most likely candidate from the Democratic Party, former Vice-President Joe Biden wins the upcoming presidential elections, the U.S. economy may find itself in a deep depression. This opinion was expressed by former chairman of the Republican Party in the State of California, writer Tom Del Beccaro, reports FOX News.
Beccaro noted that now the U.S. economy is in recession amid the crisis due to the coronavirus pandemic. Thus, the country has a record unemployment rate, about half of small business owners express fears that they will not be able to avoid bankruptcy in the summer. The expert believes that in such conditions the country needs political decisions that will ensure economic growth. Small businesses should receive special support.
The measures proposed by Biden in the framework of the election program will lead to greater deterioration of the situation of small businesses. Beccaro notes that one of the main promises of the former vice president is the abolition of the tax reform, which was carried out by the current head of state Donald Trump. Biden plans to raise the income tax for high-income holders from 36 to 39.6 percent, the capital gains tax from 23.8 to 28-35 percent, and the corporate income tax from 20 to 28 percent. His economic strategy also envisages a twofold increase in the tax on income earned abroad.
The damage to energy, agriculture, and other sectors of the U.S. economy will also support the former vice president in adopting a package of bills aimed at addressing climate change.
The expert believes that this will exacerbate the situation, not contribute to the recovery of the U.S. economy.