USA: Joe Biden increases minimum wage for hundreds of thousands of Americans

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US President Biden: "The wealthy have to pay their fair share"

Photo: Evan Vucci / AP

US President Joe Biden will raise the minimum wage for hundreds of thousands of employees of US government contractors - from currently just under US $ 11 to US $ 15 an hour.

That corresponds to around 12.50 euros.

The new minimum wage will apply from the beginning of next year in new contracts and when extending existing contracts, said a senior government representative.

From 2023, the minimum wage will then be adjusted in line with the inflation rate.

Hundreds of thousands of workers should "no longer work full-time and still have to live in poverty," said the official.

The White House assumes that the measure will be cost-neutral for taxpayers because it will increase productivity.

In addition, the work of the authorities should become better and faster, promises Biden's team.

The regulation primarily affects employees of companies that provide services on behalf of the government.

These include, for example, cleaning staff, craftsmen and canteen employees.

The government did not provide an exact number of those affected.

The national minimum wage is currently $ 7.25.

There are also higher limits in some states.

US President pushes gigantic infrastructure program

In the first days of his term in office, the newly elected US President is pushing ahead with his "American Rescue Plan". It comprises a gigantic 1.9 trillion dollars, half of Germany's gross domestic product, and appears - especially by American standards - social democratic. The plan is officially about infrastructure, but it also includes nationwide relief efforts for children, paid parental leave and free public schools.

Biden wants to finance the reforms, among other things, through higher corporate taxes and a tax increase for the rich.

On Monday, his economic adviser announced that capital gains tax would be increased for US citizens with annual incomes of $ 1 million or more.

This applies to 500,000 households and thus 0.3 percent of taxpayers.

He did not give details of the exact increase in capital gains tax, but media reports suggest that it will be increased from the current 20 percent to 39.6 percent and thus practically doubled.

Biden declares war on tax evaders

The New York Times reported on Tuesday that Biden would like to intensify the fight against tax evaders. The newspaper cites two anonymous sources in Biden's environment. Accordingly, the tax authorities should have significantly more funds available in the future to hunt down tax evaders. There is talk of an additional $ 80 million, tax investigators will also receive additional rights, and some wealthy people will probably have stricter rules for disclosing their income. According to the New York Times report, Biden officials have calculated that aggressive tax avoidance measures could raise at least $ 700 billion over the next decade.

On Wednesday, Biden will first give a speech in front of both chambers of the US Congress, where his plans are likely to cause heated debates.

The US president had previously stated that the wealthy had to pay "their fair share" to support his political priorities.

He did not deviate from this stance despite objections from Congress and business.

According to surveys, this view is supported by most US citizens.

slü / AFP