The Significance of the Tax Reforms of J. Biden’s Administration to Ensure Fiscal Sustainability of the United States

Abstract

The article briefly discusses the positive and negative impacts of D. Trump's tax reform, which came into law through The Tax Cuts and Jobs Act of 2017. It contains a detailed analysis of J. Biden's pre-election tax program, approved after his election as the 46th President of the United States. A preliminary analysis of the possible effects of the main tax initiatives proposed by J. Baiden in the short and long term has been carried out. Biden's plan to save the economy called "Build Back a Better America" (Build Back Better), is analyzed, as well as the administration’s plans to fight the COVID-19 coronavirus implemented in the form of the following laws: the "American Rescue Plan 2021" estimated at 1.9 trillion; the "American Employment or Job Creation Plan" (AJP), with a budget of 2.3 trillion, the "American Families Support Plan" (AFP) worth 1.8 trillion. and, the law "On Reducing Inflation in 2022", aimed at supporting low- and middle-income American families by reducing current and future inflation in the country. Special attention is also given to the analysis of the effectiveness of the tax initiatives proposed by the 46th President of the United States to change the structure of the current tax system, improving the taxation of individuals and businesses. It is concluded that it is the best time to correct the current US tax mechanism and change the fiscal policy pursued by the Joseph Biden administration in order to promote the necessary level of R&D and smooth out the negative consequences of business cycles. The article also reviews the main changes concerning the completion of tax return form 1040 and its appendices after the introduction of the tax amendments made by J. Biden for the payment of individual income tax.