The Joe Biden administration’s response to the Covid challenge has been extraordinary. The pandemic looks comparatively under control, thanks to the pace of vaccination, and the economic recovery is getting stronger than anticipated earlier. After a massive $1.9-trillion relief package, the Biden administration has unveiled a $2 trillion infrastructure plan. While the fiscal push will boost growth in the near term, its longer-term implications are not yet settled. In a way, the administration is challenging some of the popular economic policy wisdom. Several economists have argued that fiscal intervention at this scale could result in overheating. The Biden administration now plans to increase the corporation tax rate from 21 per cent to 28 per cent. The US is also advocating a global minimum corporate tax rate, which could have far-reaching implications.
TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.
Already a premium subscriber? LOGIN NOW
What you get on Business Standard Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- 26 years of website archives.
- Preferential invites to Business Standard events.
Subscribe to Business Standard Premium
Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!
First Published: Sun, April 11 2021. 23:04 IST