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Britain, Australia to sign agreement to build nuclear submarines

Britain, Australia to sign agreement to build nuclear submarines

Miami Herald2 days ago
July 25 (UPI) -- Britain and Australia confirmed Friday that they would proceed with a $245 billion nuclear-powered submarine deal as part of a defense pact between the two countries and the United States -- despite Washington rethinking its involvement.
Following a meeting, Australian Defense Secretary Richard Marles said he and British Defense Secretary John Healey would sign a 50-year cooperation treaty on Saturday to deliver an Australian fleet of submarines, powered by British nuclear reactors.
Marles hailed the deal, part of a trilateral security pact signed in 2021, as the most significant U.K.-Australian treaty signed in the 124-year history of modern Australia.
The AUKUS alliance, aimed at countering China's military rise in the Asia-Pacific, called for Australia to be armed with eight nuclear submarines, three repurposed from the United States' existing fleet and the remainder a new SSN-AUKUS submarine that Australia and Britain would build together.
However, concerns were raised that the first U.S. submarines wouldn't be handed to Australia within the timeline of the early 2030s because U.S. Defense Secretary Pete Hegseth is reviewing the Biden administration-brokered AUKUS and the U.S. submarine pipeline was behind time.
Healey said they welcomed Hegseth's review as a chance for the new administration of U.S. President Donald Trump to "renew their commitment," which he said he fully expected to happen.
Marles said last month that he was "very confident" the United States would remain in AUKUS because of its strategic benefit to all three countries.
The pact came into force three days before Trump was sworn in as the 47th president of the United States in January, triggering a review to ensure it is a fit with his "America First" policy.
In a meeting in Singapore in June, Hegseth told Marles that Australia should increase defense spending to 3.5% of GDP.
Elbridge Colby, the U.S. defense official carrying out Hegseth's review, has said AUKUS could compromise national security if the United States were to begin selling its Virginia-class submarines to Australia in the early 2030s, as per the original agreement.
Neither Healey nor Marles would say whether the two countries would go it alone with building the submarines if the United States opted to withdraw.
The Australia-U.K. treaty encompasses a comprehensive framework to develop the necessary infrastructure and workforce in Australia to build, operate and support the submarine program, with the deal providing a boost to British exports of more than $26 billion by 2050.
"Through the treaty, we are supporting high-skilled, well-paid jobs for tens of thousands of people in both the U.K. and Australia," said Healey.
Australian Strategic Policy Institute senior analyst Euan Graham said the new treaty was not sending a message to the Trump administration but was "more of a reflection that AUKUS has always been a 3-way arrangement, and that the U.K.-Australia side of the triangle is vital to its success."
He said the program would also produce economies of scale, allowing Britain's Royal Navy to increase its nuclear fleet from seven to 12 submarines.
Copyright 2025 UPI News Corporation. All Rights Reserved.
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Thailand, Cambodia continue fighting despite cease-fire pledges
Thailand, Cambodia continue fighting despite cease-fire pledges

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Thailand, Cambodia continue fighting despite cease-fire pledges

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Lawmakers clash on potential Maxwell pardon but work together on bill

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I Asked ChatGPT What Would Happen If Billionaires Paid Taxes at the Same Rate as the Upper Middle Class
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I Asked ChatGPT What Would Happen If Billionaires Paid Taxes at the Same Rate as the Upper Middle Class

There are many questions that don't have simple answers, either because they're too complex or they're hypothetical. One such question is what it might mean for billionaires to pay taxes at the same rate as the upper middle class, whose income starts, on average, at around $168,000, depending on where you live. Find Out: Read Next: ChatGPT may not be an oracle, but it can analyze information and offer trends and patterns, so I asked it what would happen if billionaires were required to pay anywhere near as much as the upper middle class. Here's what it said. A Fatter Government Larder For starters, ChatGPT said that if billionaires paid taxes like the upper middle class, the government would bring in a lot more money — potentially hundreds of billions of dollars more every year. 'That's because most billionaires don't make their money from salaries like upper-middle-class workers do. Instead, they grow their wealth through investments–stocks, real estate, and businesses–which are often taxed at much lower rates or not taxed at all until the assets are sold,' ChatGPT told me. Billionaire income is largely derived from capital appreciation, not wages. In other words, they make money on their money through interest. And as of yet, the U.S. tax code doesn't tax 'unrealized capital gains' so until you sell your assets, you could amass millions in appreciation and not pay a dime on it, ChatGPT shared. Learn More: What Do Billionaires Pay in Taxes? Right now, many billionaires pay an effective tax rate of around 8% or less, thanks to loopholes and tax strategies. Meanwhile, upper-middle-class households earning, say, $250,000 might pay around 20% to 24% of their income in taxes. (Keep in mind that the government doesn't apply one tax bracket to all income. You pay tax in layers, according to the IRS. As your income goes up, the tax rate on the next layer of income is higher. So you pay 12% on the first $47,150, then 22% on $47,151 to $100,525 and so on). So, if billionaires were taxed at the same rate as those upper-middle-class wage earners, 'it would level the playing field–and raise a ton of revenue that could be used for things like infrastructure, education or healthcare,' ChatGPT said. The Impact on Wealth Equality I wondered if taxing billionaires could have any kind of impact on wealth equality, as well. While it wouldn't put more money in other people's pockets, 'it could increase trust in the tax system, showing that the wealthiest aren't playing by a different set of rules,' ChatGPT said. It would also help curb 'the accumulation of dynastic wealth,' where the richest families essentially hoard wealth for generations without contributing proportionally to the system. But it's not a magic bullet. 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A likely compromise would come from a policy decision, which isn't likely to be forthcoming anytime soon. President Donald Trump's One Big Beautiful Bill only offered more tax breaks to the wealthiest. However, policy proposals that have been floated, include: A minimum tax on billionaires where they might pay around 20% of their overall income Limiting deductions and closing tax loopholes that allow them to significantly reduce taxable income Tax unrealized gains (those assets that have only earned but not yet been sold), gradually. ChatGPT agreed that billionaires could pay more than they currently do, even if they don't pay exactly what upper-middle-class workers pay in percentage terms. 'The key is to design policies that are fair, enforceable, and politically feasible.' I asked how realistic such policy proposals are, and ChatGPT told me what I already knew: They're 'moderately realistic' but only with the 'right political alignment.' 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