We Can't Have Joe Biden's "Unity" Without Accountability
Though the physical event was small — due to the enhanced security measures enacted in fear of violence or resistance against the transition of power, and the persisting pandemic — and more than 191,500 flags stood in place of the people that usually crowd the surrounding area, the event was filled with prominent guests and high profile performances, both in person and virtual.
The virtual portion of the day was a mixture of performances, speeches, and video compilations 'hosted' by Tom Hanks.
Just as the Simpsons predictedvia FOX
As part of the proceedings, former Presidents Barack Obama, George W. Bush, and Bill Clinton appeared in a video giving a joint speech, which had the vibe of a group project where you didn't get to choose your partners and you got stuck with some kids you neither knew or liked.
The three most recently joined forces to volunteer to take the COVID-19 vaccine when it was first approved, and like an aged boyband, they came back for one night only, streamed live across America.
In their video, the three ex-presidents congratulated President Joe Biden and stressed the importance of peaceful transitions of power, ostensibly trying to lead by example in a show of bipartisan unity while making a point about the noticeably absent President Trump (who was on his way to Mar-a-Lago with his crying conspirators/children).
The message of the former presidents came alongside Biden urging for "unity" in his Inaugural address.
But what does this mean?
From the beginning of his Inauguration speech, Biden declared his presidency one of "history and hope. Of renewal and resolve." Referring to the historic nature of his cabinet and Kamala Harris's historic position as Vice President, Biden's self-congratulatory remarks also stir up questions.
The intentionally indefinite rhetoric asks: "hope" of what, and for whom? "Renewal" of what? Leaving an era defined by the slogan "Make America Great Again," it feels dangerous to tie a Presidency to the idea of some vague longing.
The politics of nostalgia allow the romanticization of a past which has always had as many problems as the present, if not more. Biden's emphasis on having a Presidency inspired by his predecessors refers to the presidency of Obama, but also to the other two horsemen of the inauguration apocalypse and the Founding Fathers … who we all know were flawed at best.
The desire to appeal to the American mythos reduces the oppression inculcated into US democracy to a footnote in the story — despite the fact that those institutions of inequality are prominent today.
Biden proclaimed that "the American story depends not on any one of us, not on some of us, but on all of us. On 'We the People' who seek a more perfect Union. This is a great nation and we are a good people."
… is that true?
While I would like to believe it, and perhaps there is room for more optimism and benefit of the doubt in an inaugural address than I'm accustomed to in life, moralizing the United States as a good nation filled with good people perpetuates the myth of American exceptionalism and allows for complacency.
We could be good people in a great nation, but the overpowering institutions of oppression and violence that we are socialized into make it easier to not be.
Biden did acknowledge that there is work still to be done, but it is dangerous to position the work of progress as a choice, rather than an imperative.
Biden's path to progress is simple: unity.
In one of the most pivotal passages of his speech, he said: "Speaking of unity can sound to some like a foolish fantasy. I know the forces that divide us are deep and they are real. But I also know they are not new. Our history has been a constant struggle between the American ideal that we are all created equal and the harsh, ugly reality that racism, nativism, fear and demonization have long torn us apart. The battle is perennial. Victory is never assured."
In this moment, Biden acknowledged the history of oppression in the United States and the deep-rooted divisions in its present. However, the proverbial good vs. evil dichotomy that he uses is a convenient scapegoat. It is easy to say that there are two sides of people, torn apart by outside forces, that just need to meet each other in the middle. But this is not how division in America has played out.
Progress in America cannot be a meeting in the middle of two forces with equal power, because that's not what the political and social landscapes look like. The forces of "racism, nativism, fear and demonization" have not "torn us apart" — those forces have separated and othered marginalized communities and excluded them from the American ideal.
Therefore, it is not the collective acceptance of the idea of "unity" that will heal the country, it is a commitment by the privileged to root out the divisive forces within themselves.
Unity and healing must happen as a result of progress, not at the expense of it. Biden's rhetoric leaves too much room for regression. But we must not pause to soothe the egos of white supremacists — their goals are not our goals. Biden's path to unity needs to look like accountability, not acquiescence.
In a recent Tweet, activist Bree Newsome stated that "The only path toward 'unity' is one that dismantles white supremacy." Anything else would be a continuation of the same structures that "resulted in the Civil War, Jim Crow, the Trump era & the insurrection that occurred two weeks ago. "
Many are feeling the gaps in Biden's rhetoric that could allow for placid and ultimately unsatisfying "progress" and citing the urgent importance of moving forward, rather than back to some fabled better days of a pre-Trump era.
The pre-Trump era created conditions for the Trump era. The current violence is not some aberration or some strange glitch in the matrix. It is a direct consequence of previous failures to root out the insidiousness of whiteness at the root of the United States.
The Problem With Moderation:
The shifting nature of Biden's address — his willingness to talk about the fact of American institutionalized oppression and speak out against white supremacy, but the inability to articulate the deep internal work that we all have to do for progress — does not present a progressive pillar to build the next four years on.
It builds one that reflects his whole career: willing to inch towards "slow progress," but more concerned with moderation than radical change.
But moderation is not the way to establish real change. Moderation allows for complacency and, as Newsome articulated, "the 'return to normalcy' narrative is a call to settle for surface-level displays of civility diversity in the aftermath of Trump's brutish behavior without any real push for systemic change."
Even in the highest offices of the two-party government lie dangerous white supremacists who incited the riots alongside Trump and remain loyal to the MAGA following — so if bipartisanship looks like coalescing into an agreeable union that includes and validates those beliefs, I don't want it.
Instead, change has to look like examining the conditions within ourselves and our society which gave those people their platforms and amend those with an eye towards accountability.
The idea of "accountability" has been thrown around so much this election that it has become diluted. Accountability has to be active. It has to not just acknowledge the past, but use those acknowledgments to work diligently towards a new future.
While it's hard to predict how much Biden's speech was well-crafted rhetoric and how much was committment to action, the prominent performativity of the ex-President's club does not bode well for radical change.
Rather, it signals a clinging onto old ideas of respectability and camaraderie between the powerful and the persistence of the same structures that allowed for the past violence to carry themselves into the future. It confirms that Trump's most egregious act was disrupting the illusion of American exceptionalism, which has been long held up by mythology and militarism.
But that disruption was necessary. And it is with those new eyes that we are more critical of Bush, Clinton, Obama, and the entire systems that elected them We have to be.
How Will the Joe Biden Tax Plan Affect Me?
The answer: most people will see no tax increases.
The tax plan that Joe Biden has rolled out is targeted at individuals making more than $400,000 a year, less than 1% of the population of the US. If you (like me) are not one of these lucky individuals, then it's very-likely that nothing in this article is going to apply to you.
But, for argument's sake, let's hop in the Model S, drive over to the penthouse, and analyze what Biden's tax code plans mean for you.
If you make over $400,000 a year
First, Biden is going to impose a 12.4% tax on incomes over $400,000 to fund Social Security, split evenly between employers and employees. This is a new tax, because Social Security taxes in the past have been capped on income at or below $137,700.
People who made over $137,700 had a tax break where they didn't have to pay into Social Security for all of their income. Biden's tax plan still allows people making over $137,700 to not pay the Social Security payroll tax for income above that amount as long as they make under $400,000.
When your income exceeds $400,000, you then have to start paying the tax again. This creates an interesting tax structure where people's income at the very bottom and the very top of their income is being taxed for Social Security, but income in the middle is not.
Second, while Biden is likely to keep many of changes from the Tax Cuts and Jobs Act, he has stated that he is going to revert the marginal tax rate for individual incomes above $400,000 from 37% back to the previous 39.6%. As with the Social Security tax, this does not kick in unless your income goes above $400,000.
Individuals making above $400,000 will also have their incomes above $400,000 see itemized deductions capped at 28%. That means if your income is over $400,000 and your tax rate is over 28%, you have less options for itemizing your deductions to get a lower tax rate.
Some business owners have benefitted from deducting up to 20% of their business income as well as 20% of the dividends from qualifying Real Estate Investment Trusts (REITs) on their taxes. Biden is proposing phasing that out for incomes above – drumroll - $400,000.
But what if you're not just making $400,000 a year? What if you are making even more than $400,000 a year? What if you earn over $1 million a year? That's when Biden's really going to hit you where it hurts – your investments.
Most people pay taxes on what's called "earned income," referring to things like your salary at your job. The tax rates for that range from 10% to 37%, depending on how much you make. If you make money from investments instead, that's a whole different story.
If you buy an investment and sell it for a profit within one year of purchase, you would pay your normal income tax on any profit you make. But if you hold the investment for longer than a year, you pay a reduced tax rate between 0% and 20%, depending on your income.
If you make over $200,000 ($250,000 for married couples), you would also pay a 3.8% tax on net investment income. What Biden is proposing is taxing any income over $1 million the same regardless of it comes from your salary or your long-term investments.
The wealthiest people in the US have seen a large amount of their income come from investments, and this measure would keep the wealthiest Americans from paying less in taxes than average working people just because the money comes from holding stocks or real estate instead of a traditional job.
If you make under $400,000 a year
Let's say that you, like more than 99% of Americans, do not make $400,000 a year. Does this mean Biden's tax plan will not affect you at all? There's actually a decent chance you might see some changes to your taxes.
Biden is proposing bringing back the First-Time Homebuyers' Tax Credit, originally created to help the housing market during the Great Recession, and provide up to $15,000 for first-time homebuyers. With interest rates at historic lows, this may be another incentive for you to consider dipping your toes into the real estate game and becoming a homeowner.
Biden is also proposing expanding the Child and Dependent Care Tax Credit from $3,000 up to $8,000 for one dependent and $16,000 if you have multiple dependents. The maximum reimbursement rate would also adjust from 35% to 50%. If you have kids or other dependents, this may reduce how much you pay in taxes by giving you a child tax credit the money you spend to support your family.
Biden also has a few very targeted tax cuts and tax benefits that will apply to a much smaller group of people. One is expanding the Earned Income Tax Credit (a tax credit for low-income people who are very close to the poverty line) and allowing people over the age of 65 to also claim the credit even if they do not have dependent children.
He would also provide a refundable low-income renter's credit, reinstate tax credits for the purchase of electric vehicles and improvements to your home to make them more energy-efficient, as well as exempt forgiven student loans from taxable income. These may not apply to as wide a group of people, but if you're older, a renter, looking to live a more green lifestyle, or seeking forgiveness for student loans, Biden's tax proposals can have you looking at a smaller tax bill.
Biden's plans for inheritances
At first glance, it looks like everyone making more than $400,000 a year will pay higher taxes and everyone else will pay less taxes than they currently do. However, there is a part of Biden's tax plan that may have an impact on you even if you are lower income – if you have a rich family.
The Tax Cuts and Jobs Act raised the threshold at which estate taxes are paid and lowered how much they have to pay in taxes. If you stand to inherit an estate worth $11.6 million dollars today ($23 million if you are a married couple), right now you don't pay taxes on it.
If you inherit more than that, you would pay a top rate of 40% tax. Biden is proposing lowering the threshold where the tax would kick in back down to $3.5 million ($7 million for married couples) and raising the tax rate back to 45%. This will affect roughly 0.3% of estates. If you are in the 99.7%, you do not need to worry about the Biden inheritance policy.
Now, the next part is closing an inheritance loophole called the "stepped-up basis" loophole. Right now, when an heir inherits an asset, they only pay taxes on the gain in value of the asset from the time that they inherited it.
Let's say your parents bought $100 worth of stocks decades ago and today those stocks are worth $10,000. If your parents passed away and left you the stocks, you would be allowed to sell them immediately and not pay any taxes.
If you held the stock and the price rose to $12,000, you would only pay taxes on the $2,000 in value the stocks gained since you inherited it. This because the initial value of the stocks would be "stepped-up" to the value at the time you inherited it rather than the value at the time your parents bought it.
This loophole has allowed the very wealthy to leave very valuable assets to their children without needing to pay taxes and allowed generations to pass large fortunes to their children. Biden has proposed closing this loophole and not stepping-up the value of an asset when it is inherited; taxes will instead be paid on the value of the asset from when it was first purchased.
This part of the plan has yet to be fully fleshed-out by Biden, but it appears to be modelled after a proposal from the Obama administration. That plan allowed an exclusion of $100,000 per person (rising with inflation) and excluding $250,000 for primary residences ($500,000 for couples). It also allowed a 15-year payment period and tax deferrals for family-owned small businesses. Biden may roll out similar provisions once he rolls his tax plan out before congress.
Does any of the Biden tax policy outlines even matter?
Maybe?
Biden has presented something of a wish list for his tax plan, but that doesn't mean he can wave a magic wand on January 20th and put it into place. This plan will require significant negotiations in Congress, and if Republicans retain a Senate majority, they may refuse to even allow a bill to have a hearing. Ultimately, Biden's tax proposals may change significantly as they work their way through Congress and if they are not able to garner enough support, they may never come into effect.