In order to pay for the massive $ 3.5 trillion expansion of President Joe Biden’s welfare state, Democrats in Congress have offered to do what they do best: raise taxes.
Democrats on the House Ways and Means Committee, which oversees the federal tax code, unveiled an 881-page bill on Monday that reveals how Biden’s extravagant plan is funded.
According to the Washington Times, the Democrats’ bill would undo much of what former President Donald Trump and a then Republican Congressman passed to help stimulate the economy to levels not seen in decades.
Democrats are looking to raise the corporate tax rate from 21% to 26.5%, while lowering capital gains tax from 20% to 25%.
The plan also increases the top personal tax rate from 37% to 39.6% under President Barack Obama – even as the federal government is already seeing record tax revenue gains under the Trump tax plan.
In a nod to radical Democratic Senator Elizabeth Warren, the bill imposes a constitutionally dubious “wealth tax”, perceived as a 3% surtax on people who earn more than $ 5 million a year.
Democrats are also proposing to increase the minimum tax on foreign income earned by U.S. corporations from 10.5% to 16.6%.
And they would increase taxes on tobacco products.
Democrats would combine these measures with the elimination of the many tax deductions Trump has put in place.
“Altogether,” the Times noted, “the proposal represents one of the largest tax increases in US history.”
The Times added that the bill “also amounts to a list of liberal priorities such as proposals to tackle climate change by promoting electric vehicles and weaning the electricity grid from fossil fuels, adding visual and auditory benefits. in Medicare and offering a tuition-free community. government paid university and family leave for all workers.
While it’s debatable whether supposedly moderate Democrats, such as the senses Joe Manchin of West Virginia and Kristen Sinema of Arizona, can help Republicans derail this thing, the bill has at least aroused commercial interests. to the economic threat posed by the Biden administration and a Democrat. – led Congress and united them with opposition Republicans.
The American Chamber of Commerce, for example, categorically denounced the bill on Monday.
“The cancellation of tax reforms that create jobs will severely hamper hiring and salary increases. Every CEO and business leader is concerned about this proposal, and the House strongly opposes it. This reconciliation bill is an existential threat to America’s fragile economic recovery and future prosperity, ”said Executive Vice President and House Policy Officer Neil Bradley.
“This is an everything but the kitchen sink bill that includes all the political ideas that the majority could not pass. We will not find lasting or practical solutions in a massive bill that equates to more than twice the combined budgets of the 50 states. The success of the bipartisan infrastructure negotiations provides a much better model for how Congress should go about solving America’s problems.
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