The challenge of “fiscal responsibility” in the Biden era

Abstract

Abstract:  Important legacies have to be reclaimed once the fiscal policy is investigated: the ones which date back to intellectual minds - among which, specifically, philosophers and justices – who have strongly reminded the importance of focusing on sociocultural and institutional approaches when looking at fiscal issues. That seems to be the unavoidable premise to look at fiscal policy during the Biden era as a contemporary issue (far) beyond the tax law perspective; rather, as a constitutional topic. Proved that the US historical and constitutional framework encourages the mentioned outlook, the paper explores the topic contextualizing the Biden Presidency’s fiscal choices within the global trends in tax administration while taking into account the recent phenomenon of worldwide forms of democratic ‘regression’ and consequent needs. Upgrading the legal theory of comparative law from a fiscal-constitutional point of view, the incentive of this paper is focused on researching the value and the implications of the challenge of “Fiscal Responsibility” expressed by President Biden. Two different perspectives are taken into consideration: on one hand, his fiscal policy through the prism of the general legal theory; on the other hand, subsequently, the exploration of the proposed alternative, an operational vision expressed in the intentions of some legislative acts and in the provisional Fiscal Year 2022 and FY 2023. The proposal founded on the “responsibility tool” appears to be a useful starting point to question its realistic foundation, also considering the nexus between the Biden Administration and the US Department of Treasury. The investigation also examines the potential new role for constitutional implications. Strategic foresight to revitalize new constitutional demands beyond traditional fiscal policies?

Keywords: Fiscal Policy; Fiscal Responsibility; Biden Administration; Constitutionalism; Department of the Treasury.