In his first speech to Congress, Biden warns of China

US President Joe Biden proposed a new comprehensive $ 1.8 trillion plan in his first speech to a joint session of Congress on Wednesday, appealing to Republican lawmakers to work with him on contentious issues and confront stiff competition from China.

In laying out a vision of more wealthy-financed government investment, the Democratic president has urged Republicans who have so far been fiercely opposed to helping him pass a wide range of legislation, from taxes to police reform and immigration.

Republicans were largely silent during the speech as Democrats began to applaud. Biden, who took office in January, made an enthusiastic plea for tax increases on corporations and American billionaires to help pay for the $ 1.8 trillion "American Families Plan" costs.

"It's time for American companies and the richest 1 percent of Americans to pay their fair share - they only pay their fair share," Biden said.

Biden spoke in the House of Representatives at an event that has been curtailed this year due to the coronavirus pandemic, removing the muzzle to speak to a carefully selected group of 200 Democratic and Republican lawmakers, other officials and guests.

Biden is trying to balance Republicans opposed to more spending and tax increases needed to save his money, and liberal Democrats who want him to push for more aggressive plans.

Expressing his willingness to work with lawmakers from both sides to reach an agreement, he said he would meet top Democrat and Republican lawmakers at the White House on May 12 to try to find common ground.

In his speech, which comes less than four months after demonstrators loyal to then President Donald Trump stormed the Congress building in an attempt to cancel the election result, Biden said, "America is moving again, turning danger into possibility, crisis into opportunity and setback into strength."

He added, "We saw with our own eyes the hell of rebellion and tyranny - the hell of pandemic and pain - and we the people did not hesitate ... At the same moment our opponents were sure that we would be split apart and fail, we gathered and united."

He noted that the new spending package, which together with a previous plan for infrastructure and jobs amounted to about $ 4 trillion, is a vital investment for the future of the United States.

"Tonight I came to talk about a crisis - and an opportunity ... about rebuilding our homeland - revitalizing our democracy and winning the future for America," he said.

But Republicans say most of the spending is aimed at satisfying Biden’s base of liberals and that the president’s plans amount to socialism.

Biden said the spending plans were needed to keep pace with China, which he and his administration viewed as a major strategic competitor.

"China and other countries are closing in on us quickly," he said, adding that he had spent a lot of time talking to Chinese President Xi Jinping.

"He is very serious about becoming the most important country in the world. He and others believe ... that democracy cannot compete with authoritarian regimes in the twenty-first century," he said.

Proposed tax reform

Biden's plan includes $ 1 trillion in education and childcare spending over ten years and $ 800 billion in tax incentives targeting middle- and low-income families.

The White House plan for American families, infrastructure and jobs this month could represent the most significant government shift in the economy in decades.

To save money for these plans, Biden proposed a comprehensive reform of the US tax system that would include raising the marginal tax rate for wealthier Americans to 39.6 percent from the current 37 percent.

Biden suggested doubling the investment income tax - known as capital gains - for Americans earning more than $ 1 million.

Funding for the infrastructure plan worth more than $ 2 trillion comes through corporate tax increases.

News of the capital gains tax proposal briefly plunged stock markets last week.

But he did not specify a date to solve this problem.

Boeing has delivered more than 85 737 MAX jets since most of the world's regulators lifted the ban it imposed on them after the two crashes.

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