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Joe Biden is set to announce a $ 1.8 billion plan to expand America’s social safety net, which will be funded by steep tax increases on the wealthiest households, senior officials said. administration.

The proposal, which spans a decade and covers areas such as child care, paid vacation, education and health care, marks the third milestone of the US president’s multibillion-dollar economic program and should be the focus of his first speech in a joint session. Congress Wednesday night on the eve of his 100th day in office.

The scale of the latest plan – called the “American Families Plan” – is greater than expected just a few weeks ago, and reflects Biden’s ambition to rebuild the U.S. economy with greater government support for the United States. households in difficulty far beyond the immediate assistance provided during the pandemic.

Tax lobbyists warn the president faces a tough climb in turning the plan into legislation, which is likely to be watered down as lawmakers grapple with him in the months to come. Democrats in affluent neighborhoods, including suburbs of New York, New Jersey, California and Illinois, in addition to the predictable Republican opposition, will likely be a stumbling block.

The Biden administration has bet that tax increases on the very rich won’t be as politically toxic as feared, and may even prove popular following large gains in stock markets during the coronavirus pandemic. .

If you want to learn more about the intersection of money and power in American politics Register now at Marsh Notes, a bi-weekly newsletter written by FT columnists Rana foroohar and Edward Luce.

Coronavirus digestion

  • the we The CDC revised its guidelines for wearing masks outdoors, saying it was safe for fully vaccinated people to exercise or attend small outdoor gatherings. The sudden slowdown in vaccinations revealed Joe biden’s next challenge: persuading reluctant Americans to take the blows. This is the second in a series on the first 100 days of the President’s tenure.

  • A single vaccine dose may halve the risk of passing Covid-19 to household members, according to in-depth real-world study.

  • India deployed soldiers and built field hospitals to bolster its fight against a devastating second wave. A critical oxygen shortage has underscored the severity of the crisis. Read this New York Times reporter’s life experience during the wave.

  • The economic damage caused to professional sport Japan by Covid-19 has forced the government to consider deregulating betting on football and baseball, a market estimated to be worth $ 65 billion a year.

  • JP Morgan chase away told all of his U.S. bankers that they should make arrangements to be back in the office on a rotational basis in early July. (FT, NYT)

Are you ready to return to the office? Take our survey.

Follow the news of our live blog and Register now for our Coronavirus Business Update newsletter.

In the news

Global IPOs start 2021 at a breakneck pace Stock quotes around the world are moving at an all-time high, with numbers and trading values ​​at their highest level for the start of each year in at least two decades. The deluge of announcements took IPO proceeds to a record $ 230 billion this year, according to Dealogic, well above the previous high of $ 80 billion set in 2000.

Column chart of the number of IPOs, by type showing the number of IPOs has skyrocketed

Google profits hit record Alphabet, the parent of the tech giant, announced record first quarter results as homebound users watched videos and clicked web ads served by the company, which also announced a buyback program for the company. ‘$ 50 billion shares. Microsoft has exceeded expectations with growing demand for PCs and game consoles as well as cloud services. For the latest news from the tech industry Register now to our #techFT newsletter.

EU to accuse Apple of anti-competitive behavior EU competition chief Margrethe Vestager this week will accuse the iPhone maker of anti-competitive behavior over concerns raised by Spotify that App Store rules for developers violate EU law. Ten months after Apple promised “enhanced privacy features” for iPhones, the changes have finally arrived. Here’s how they’re shaking up the app economy.

Biden signs order to raise federal minimum wage The US president on Tuesday signed an executive order requiring federal contractors to pay a minimum wage of $ 15 an hour as he increased pressure on businesses and Congress to raise workers’ wages.

Saudi crown prince says he wants to mend disputes with Iran Mohammed bin Salman said in an interview with Saudi TV that Riyadh is keen to resolve its differences with rival Iran, a marked change in tone following the election of US President Joe Biden.

MEPs approve Brexit trade deal Britain’s post-Brexit trade deal with the EU passed its latest political hurdle on Wednesday, after the European Parliament overwhelmingly approved it, despite calling it ” historical error ”. register here for our Europe Express newsletter, your essential guide to what matters in Europe today, every morning of the week.

Canada hails ‘watershed moment’ in taxation Chrystia Freeland, Canada’s finance minister, called the US proposal for a global minimum corporate levy a “watershed” in an interview with the Financial Times. On Tuesday, the finance ministers of France and Germany said they would support the 21 percent minimum corporate tax rate proposed by Washington.

China set to report first population decline in 5 decades China’s latest census, which was completed in December but has yet to be released, is expected to put the country’s total population below 1.4 billion, its first drop since Mao Zedong’s disastrous Great Leap Forward. , despite the relaxation of strict family planning. policies in 2015.

Population column chart (in millions) showing that China's population fell last year

Samsung heirs reveal legacy plan The family of late Samsung patriarch Lee Kun-hee pledged billions of dollars in health spending and art donations and pledged to pay $ 11 billion in one of the biggest inheritance tax bills in the world. After Lee’s death in October, South Korea’s most powerful family had six months to tell tax officials how they were going to handle the estate of the country’s richest man.

The day ahead

Fed meeting Investors will follow the Federal Reserve’s post-meeting press conference today for any indication from President Jay Powell on the US central bank’s thinking on inflation.

Earnings It’s another big day for profits: Apple is expected to post a bumper quarterly result with revenues of $ 76.6 billion, while other tech, e-commerce and social media companies reporting include finds Facebook, eBay, Shopify, and Spotify.

What else do we read

China is wrong to think that the United States faces inevitable decline While America might falter, that would be its choice and not its fate, writes Martin Wolf. Its economic advantages are too important. This was the basis of its global power and influence. So what does its power of innovation look like today? The answer is: pretty good, despite competition from China.

Martin Wolf: “Without Saudi oil, the five most valuable companies in the world would be American tech giants: Apple, Microsoft, Amazon, Alphabet and Facebook. China has two valuable technology companies: Tencent (seventh) and Alibaba (ninth) ”© James Ferguson

Watch out for Wall Street: SEC Gensler carries a big stick The last time Gary Gensler ran a US financial regulator, he was tasked with cleaning up the mess left by the 2008 crash. Now the new chairman of the US Securities and Exchange Commission is under pressure to crack down and deflate all bubbles. before they burst, writes Brooke Masters.

Credit Suisse: Preparing for a Return After ‘Costly Mistakes’ The two failures of Greensill Capital and Archegos have put Credit Suisse in the limelight for all the wrong reasons, raising doubts about the very existence of the 165-year-old bank and whether it will be dismantled or survive in a European banking market under pressure to consolidate.

The new wave of crypto users A growing number of Latin Americans are using cryptocurrency to send money from the United States to their families. While technological barriers still exist, crypto allows migrant workers to avoid high commission fees and has grown in popularity amid problems with currency devaluation. (Rest of the world)

Creating better jobs for young people What do young people expect from the world of work? Tired tropes about “job applicants” looking for “meaning” are a distraction. Most young people want what their parents and grandparents wanted: a decent income, a chance to grow, and enough security to build a life. The problem is, too few do.

Have you recently graduated? As part of a reporting project, we want to know what the past year has been like for you. Please share your stories and thoughts in our investigation.

In the UK, people under 35 account for over 80% of the drop in the number of employees since February

In the United Kingdom, those under 35 account for more than 80% of the drop in the number of employees since last February © FT montage / Getty

Podcast of the day

The finances of moving abroad After months of deadlock, Viktoria, a 31-year-old financial professional, is considering moving abroad. She talks to Claer Barrett about her desire to escape corporate life in London and her worries about the fate of her property, pensions and investments.

Thanks for the reading. Send your recommendations and comments to [email protected]


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