Joe Biden justifies cost of 'blue collar blueprint to rebuild America' with tax hikes for high-earners

Joe Biden declared the United States is "on the move again" as he marked 100 days in office with his first address to Congress.

The US president outlined trillions of dollars in post-pandemic spending plans including the "the largest jobs plan since World War II".

Mr Biden said: "It is 100 days since I took the oath of office and inherited a nation in crisis. Now, I can report to the nation - America is on the move again. Turning peril into possibility, crisis into opportunity, setback into strength.

"In America we never, ever stay down. Americans always get up. Today, America is rising anew. America is ready for takeoff. We have shown each other and the world there is no quit in America."

In his address on Wednesday night the US president added: "We have stared into an abyss of insurrection and autocracy, of pandemic and pain, and 'We the People' did not flinch."

Mr Biden said his $2.3 trillion infrastructure plan represented a "blue collar blueprint to rebuild America".

His proposed $1.8 trillion "American Families Plan" was a "once in a generation" investment in childcare and community colleges which would help America out-compete China, he said.

Mr Biden spent a large section of his speech justifying his plans to pay for the massive projects by increasing taxes.

That would include doubling capital gains tax for those earning over $1 million, hiking the top rate of income tax from 37 per cent to 39.6 per cent, and raising corporation tax from 21 per cent to 28 per cent.

Mr Biden said: "[There are] good guys and women on Wall Street. But Wall Street didn't build this country. The middle class built this country. And unions built the middle class.

"It's time for corporate America and the wealthiest one per cent to pay their fair share. Just their fair share.

"I think you should be able to become a millionaire and billionaire, but pay your fair share."

He said 20 million working and middle class Americans lost their jobs in the pandemic while 650 billionaires saw their combined wealth grow by $1 trillion.

Mr Biden said: "It's not right. We're not looking to punish anybody, but I will not add an additional tax burden on the middle class, They're already paying enough. I believe what I propose is fair and fiscally responsible.

"Trickle down economics has never worked and its time to grow the economy from the bottom and the middle out."

On the world stage Mr Biden said America must show allies "not just that we're back, but we're back to stay".

He said: "No one nation can deal with all the crises of our time. There is no wall high enough to keep any virus out."

Mr Biden said he "welcomed the competition" from China and was "not looking for conflict".

The President said: "China and other countries are closing in fast. He [Chinese President Xi Jinping] is deadly earnest about becoming the most significant, consequential nation in the world.

"He and others, autocrats, think that democracy can’t compete with autocracies in the 21st century. It takes too long to get consensus."

On Russia, Mr Biden said: "I have made very clear to Putin that we don't seek escalation but their actions have consequences."

Mr Biden's speech took place amid high security with the US Capitol still surrounded by fencing after the building was stormed in January by insurrectionists.

Only 200 politicians were allowed in the chamber and they sat socially distanced with masks on. For the first time the two politicians seated behind a president addressing Congress were women, Vice President Kamala Harris and House Speaker Nancy Pelosi.

Delivering the Republican response Tim Scott, the only black Republican senator, accused Mr Biden of setting out "socialist dreams" and "pulling us further and further apart".

He also lambasted Mr Biden for schools still not being open, which the president had pledged to have done after 100 days.