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Politics Democrats seek corporate, wealthy tax hikes for $3.5T plan

07:40  14 september  2021
07:40  14 september  2021 Source:   msn.com

$3.5 trillion Democratic Party spending plan means tax hikes

  $3.5 trillion Democratic Party spending plan means tax hikes President Joe Biden and Senate Democrats are pushing a reckless $3.5 trillion tax and spend plan. © Provided by Washington Examiner Senate Majority Leader Chuck Schumer and Budget Committee Chairman Bernie Sanders claim their plan would be the largest tax cut in history for the middle class. This is not true. These plans would raise taxes on working families and small businesses and would expand the welfare state and broader dependency on government.

WASHINGTON (AP) — House Democrats unveiled a sweeping proposal for tax hikes on big corporations and the wealthy to fund President Joe Biden's $3.5 trillion rebuilding plan, as Congress speeds ahead to shape the far-reaching package that touches almost all aspects of domestic life.

In this Sept. 9, 2021 photo, House Ways and Means Committee Chairman Richard Neal, D-Mass., presides over a markup hearing to craft the Democrats' Build Back Better Act, massive legislation that is a cornerstone of President Joe Biden's domestic agenda, at the Capitol in Washington. (AP Photo/J. Scott Applewhite) © Provided by Associated Press In this Sept. 9, 2021 photo, House Ways and Means Committee Chairman Richard Neal, D-Mass., presides over a markup hearing to craft the Democrats' Build Back Better Act, massive legislation that is a cornerstone of President Joe Biden's domestic agenda, at the Capitol in Washington. (AP Photo/J. Scott Applewhite)

The proposed top tax rate would revert to 39.6% on individuals earning more than $400,000, or $450,000 for couples, and there would be a 3% tax on wealthier Americans with adjusted income beyond $5 million a year. For big businesses, the proposal would lift the corporate tax rate from 21% to 26.5% on incomes beyond $5 million, slightly less than the 28% rate the president had sought.

A leaked tax plan draft shows how Democrats want to raise $2.9 trillion from wealthy Americans and big corporations, rolling back Trump-era tax cuts

  A leaked tax plan draft shows how Democrats want to raise $2.9 trillion from wealthy Americans and big corporations, rolling back Trump-era tax cuts A document circulating among House Democrats says high-earning Americans with incomes over $5 million could see a 3% "surtax."America's highest earners and biggest companies would bear the brunt of the tax hikes, which amount to a rollback of many provisions approved by President Donald Trump four years ago.

In all, the tax hikes are in line with Biden’s own proposals and would bring about the most substantive changes in the tax code since Republicans with then-President Donald Trump slashed taxes in 2017. Business and anti-tax groups are sure to object. But Democrats are pressing forward.

In this Sept. 8, 2021 photo, Speaker of the House Nancy Pelosi, D-Calif., meets with reporters to discuss President Joe Biden's domestic agenda at the Capitol in Washington. House Democrats are unveiling a sweeping proposal for tax hikes on big corporations and the wealthy to fund President Joe Biden’s $3.5 trillion rebuilding plan. The House released details on Monday as Congress speeds ahead to shape the far-reaching package touches almost all aspects of domestic life.   (AP Photo/J. Scott Applewhite) © Provided by Associated Press In this Sept. 8, 2021 photo, Speaker of the House Nancy Pelosi, D-Calif., meets with reporters to discuss President Joe Biden's domestic agenda at the Capitol in Washington. House Democrats are unveiling a sweeping proposal for tax hikes on big corporations and the wealthy to fund President Joe Biden’s $3.5 trillion rebuilding plan. The House released details on Monday as Congress speeds ahead to shape the far-reaching package touches almost all aspects of domestic life. (AP Photo/J. Scott Applewhite)

Rep. Richard Neal, D-Mass., the chairman of the tax-writing Ways & Means Committee, said Monday the proposals, taken together, would “expand opportunity for the American people and support our efforts to build a healthier, more prosperous future.”

House Democrats take step back from Biden on tax hikes

  House Democrats take step back from Biden on tax hikes House Democrats on Monday released tax-increase legislation that scales back some of President Biden's key proposals as they work to craft a massive social spending package that can get the votes to become law.The bill text released Monday by the House Ways and Means Committee includes a variety of tax increases targeted at wealthy individuals and corporations in an effort to help pay for $3.5 trillion in spending and tax cuts in areas such as child care, climate and health care. But in many ways it is not as aggressive in raising taxes as Biden has proposed, prompting criticism from progressive groups.

It's an opening bid at a daunting moment for Biden and his allies in Congress as they assemble the massive package that is expected to become one of the largest single domestic policy measures considered in decades. The president's “Build Back Better” agenda includes spending on child care, health care, education and strategies to confront climate change. It is an ambitious undertaking on par with the Great Society or New Deal.

Sen. Amy Klobuchar, D-Minn., left, and Sen. Joe Manchin, D-W.Va., stand on the steps of the Capitol during a Sept. 11 remembrance ceremony, in Washington, Monday, Sept. 13, 2021. As congressional Democrats speed ahead this week in pursuit of President Joe Biden's $3.5 trillion plan for social and environmental spending, Manchin, a Democratic senator vital to the bill's fate, says the cost will need to be slashed to $1 trillion to $1.5 trillion to win his support. (AP Photo/J. Scott Applewhite) © Provided by Associated Press Sen. Amy Klobuchar, D-Minn., left, and Sen. Joe Manchin, D-W.Va., stand on the steps of the Capitol during a Sept. 11 remembrance ceremony, in Washington, Monday, Sept. 13, 2021. As congressional Democrats speed ahead this week in pursuit of President Joe Biden's $3.5 trillion plan for social and environmental spending, Manchin, a Democratic senator vital to the bill's fate, says the cost will need to be slashed to $1 trillion to $1.5 trillion to win his support. (AP Photo/J. Scott Applewhite)

Republican critics decry the sweep of Biden's plan, suggesting it slopes toward a Western European-style socialism, and they particularly reject the taxes required to pay for it, bristling because it would reverse the GOP tax cuts that were approved just a few years ago.

House Democrats unveil plan to raise taxes on Amazon, Microsoft, and other wealthy corporations and Americans making over $5 million

  House Democrats unveil plan to raise taxes on Amazon, Microsoft, and other wealthy corporations and Americans making over $5 million The House Ways and Means's plans to hike corporate taxes to 26.5% and capital gains to 25% are all more modest than Biden's original proposals.On Monday, Democrats on the House Ways and Means Committee circulated a draft of its tax proposals for the nascent reconciliation plan. They aim to approve it along party-lines without any Republican support because the reconciliation process only requires a simple majority vote.

Senate Republican leader Mitch McConnell said the proposal is “the last thing American families need.” All GOP lawmakers are expected to vote against it.

But Republicans are largely sidelined as Democrats rely on a budget process that will allow them to approve the proposals on their own, if they can muster their slight majority in Congress.

Democrats have no votes to spare to enact Biden’s agenda, with their slim hold on the House and the Senate split 50-50 and Vice President Kamala Harris the tiebreaker if there is no Republican support. Democratic congressional leaders have set a target of Wednesday for committees to have the bill drafted.

House Judiciary Committee Chair Jerrold Nadler, D-N.Y., left, listens as Rep. Jim Jordan, R-Ohio, the ranking member, makes an opening statement during a markup session as congressional Democrats speed ahead this week in pursuit of President Joe Biden's $3.5 trillion plan for social and environmental spending, at the Capitol in Washington, Monday, Sept. 13, 2021. (AP Photo/J. Scott Applewhite) © Provided by Associated Press House Judiciary Committee Chair Jerrold Nadler, D-N.Y., left, listens as Rep. Jim Jordan, R-Ohio, the ranking member, makes an opening statement during a markup session as congressional Democrats speed ahead this week in pursuit of President Joe Biden's $3.5 trillion plan for social and environmental spending, at the Capitol in Washington, Monday, Sept. 13, 2021. (AP Photo/J. Scott Applewhite)

One Democratic senator vital to the bill’s fate says the cost will need to be slashed to $1 trillion to $1.5 trillion to win his support.

Democrats try delicate tax maneuver for $3.5 trillion bill

  Democrats try delicate tax maneuver for $3.5 trillion bill WASHINGTON (AP) — To pay for the massive social plans that President Joe Biden envisions, House Democrats began serious work Tuesday on a maneuver worthy of the most agile circus acrobats. They’re looking to squeeze revenue from the elite 2% of Americans who earn more than $400,000 a year while leaving untouched everyone else — who Biden has pledged won't see any tax increases. Republicans, as opposed to those tax increases as expected, also turned their anger on Tuesday against proposed tax breaks they portrayed as subsidies for wealthy elites rather than help for the poor and middle class.

Sen. Joe Manchin, D-W.Va., has suggested it's time for a “strategic pause,” and cautioned there was “no way” Congress will meet the late September goal from House Speaker Nancy Pelosi, D-Calif., for passage, given his wide differences with liberal Democrats on how much to spend and how to pay for it.

“I cannot support $3.5 trillion,” Manchin said Sunday, citing in particular his opposition to raising the corporate tax rate above 25%, a figure he says will keep the U.S. globally competitive.

Manchin is not alone, as other centrist lawmakers have raised concerns. Restive Democrats from high-tax, heavily Democratic states like New York, New Jersey and California are pushing for a repeal of the $10,000 cap on state and local tax deductions that was imposed by the 2017 Trump law. Neal indicated Monday that the issue is under serious consideration.

Finding compromise will be a daunting project as progressives, including Sen. Bernie Sanders, I-Vt., are angling for the most robust package possible. As chairman of the Budget Committee helping to write the bill, Sanders has noted that he and other members of the liberal flank had initially urged an even more robust package of $6 trillion.

House Judiciary Committee Chair Jerrold Nadler, D-N.Y., top center, and Rep. Jim Jordan, R-Ohio, top right, the ranking member, make opening statements as the panel holds a markup as congressional Democrats speed ahead this week in pursuit of President Joe Biden's $3.5 trillion plan for social and environmental spending, at the Capitol in Washington, Monday, Sept. 13, 2021. (AP Photo/J. Scott Applewhite) © Provided by Associated Press House Judiciary Committee Chair Jerrold Nadler, D-N.Y., top center, and Rep. Jim Jordan, R-Ohio, top right, the ranking member, make opening statements as the panel holds a markup as congressional Democrats speed ahead this week in pursuit of President Joe Biden's $3.5 trillion plan for social and environmental spending, at the Capitol in Washington, Monday, Sept. 13, 2021. (AP Photo/J. Scott Applewhite)

“For me, this is not a particular number, but it is making sure that we meet this moment,” said Rep. Katherine Clark, D-Mass., a member of House leadership. “The pandemic has shown us that we cannot continue to have an economy of haves and have nots.”

Democrats try delicate tax maneuvers for $3.5 trillion bill

  Democrats try delicate tax maneuvers for $3.5 trillion bill WASHINGTON (AP) — House Democrats began the serious work of trying to implement President Joe Biden’s expansive spending plan, but getting there will require remarkable legislative nimbleness, since Biden has said the revenue to pay for it must come only from Americans who earn more than $400,000 a year. Republicans, who have vowed lockstep opposition to the plan, turned their anger against proposed tax breaks they portrayed as subsidies for wealthy elites rather than help for the poor and middle class. Electric vehicles became a rallying symbol as class-warfare overtones echoed through a committee session.

The White House welcomed the preliminary tax plan, which keeps to Biden's promise not to tax anyone making less than $400,000. The proposal “makes significant progress towards ensuring our economy rewards work and not just wealth,” said deputy press secretary Andrew Bates.

The House, Senate and White House are working together to align their plans ahead of this month's deadlines, though some differences are emerging that will need to be resolved.

The House tax proposal was pitched as potentially raising some $2.9 trillion, a preliminary estimate — but it would go a long way toward paying for the $3.5 trillion legislation. The White House is counting on long-term economic growth from the plan to generate an additional $600 billion to make up the difference.

Much of the revenue raised would come from the higher taxes on corporations and the highest earners, increasing the individual tax rate to 39.6% from the current 37%.

Looking at wealthy individuals, Neal is proposing an increase in the top tax rate on capital gains for those earning $400,000 a year or more, to 25% from the current 20%. Exemptions for estate taxes, which were doubled under the 2017 Trump tax law to now $11.7 million for individuals, would revert to $5 million.

Also proposed are increases in the tax rate on tobacco products and a new tax on non-tobacco nicotine delivered by e-cigarettes.

The broader blueprint from Democrats proposes spending billions for rebuilding infrastructure, tackling climate change and expanding or introducing a range of services, from free prekindergarten to dental, vision and hearing aid care for older people.

Congressional committees are hustling to wrap up their work to meet this week’s timeline from Pelosi and Senate Majority Leader Chuck Schumer, D-N.Y., to have the bill drafted. Pelosi is seeking a House vote by Oct. 1, and it would then go to the Senate. That's near the Sept. 27 timeline for voting on a slimmer infrastructure plan favored by moderate lawmakers.

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Associated Press writers Hope Yen and Josh Boak contributed to this report.

'Godzilla': Top GOP tax writer says Biden spending package 'most dangerous' he has seen .
A chief architect of the 2017 tax cuts said Democrats’ multitrillion-dollar tax and spending package is the “most dangerous” he has seen during his more than two decades in Congress. © Provided by Washington Examiner Rep. Kevin Brady, the ranking member of the powerful House Ways and Means Committee, told the Washington Examiner that he has been working tooth and nail to fight the proposed $3.5 trillion legislative behemoth, which he said dwarfs spending battles of the past. He lamented the proposal as “tragic.

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