House Dems are plotting a $2.9 TRILLION tax raid to fund a massive social spending plan with big business and America’s richest bearing the brunt of surges in Trump reform rollbacks, leaked plans reveal
- America’s richest individuals and corporations will be the target of another tax raid
- Corporate tax increases by 5% and income over $5 million has a 3% surcharge
- Individuals earning more than $400,000 receive a top tax rate of 39.6%
House Democrats are planning a massive tax bill on the rich, corporations and investors to raise $2.9 billion to cover the costs of President Joe Biden’s domestic plans, leaked documents reveal.
The plans are a major rollback of Donald Trump’s tax cuts and will raise the corporate rate from 21 percent to 26.5 percent according to the draft proposal circulating among Democrats on the House Ways and Means Committee.
Democrats are also expected to propose a 3 percent surcharge on individual income above $5 million, which will bring in $127 billion alone.
House Democrats Plan Massive Tax Attack on the Rich, Corporations and Investors to Raise $2.9 Billion to Cover the Cost of President Joe Biden’s Domestic Plans
They are also considering raising the minimum tax rate on US corporations’ foreign income from 10.5 percent to 16.5 percent and the top rate of capital gains tax to 28.8 percent from 23.8 percent.
The raid isn’t as aggressive as Biden had suggested earlier this year, but will still hit Americans hard, plans secured by Business Insider to reveal.
Individuals earning more than $400,000 receive a top tax rate of 39.6 percent, while married couples earning more than $450,000 together are also taxed at the same rate.
The capital gains raise, which taxes asset gains, will target those earning more than $400,000, despite the White House previously saying it would only apply to those earning more than $1 million a year.
The plans are a major rollback of Donald Trump’s tax cuts and will raise the corporate rate from 21 percent to 26.5 percent
Companies with incomes less than $400,000 will see their tax rate drop to 18 percent, and the increase only applies to companies that bring in more than $5 million.
The Wall Street Journal first reported the outline of the proposal, citing a congressman.
A spokesperson for the House Ways and Means Committee, which is responsible for tax policy, did not immediately respond to a request for comment.
In a statement, White House spokesman Andrew Bates said House Democrats are “making significant progress to ensure that our economy rewards work, not just wealth, by lowering taxes on middle-class families; tax reform to prevent the offshoring of US jobs; and make sure the richest Americans and big corporations pay their fair share.”
The total package of tax changes, summarized in a four-page document circulating among lobbyists and congressional officials on Sunday, would bring in an estimated $2.9 trillion in new revenue, largely to cover the cost of President Joe Biden’s $3.5 trillion domestic investment plan. dollars to cover.
The massive 10-year spending plan focuses on Biden’s top priorities in education, climate change, immigration and expands the social safety net.
The package also includes $80 billion in additional funding to the Internal Revenue Service specifically for tax enforcement for high-income taxpayers, which could bring in as much as $200 billion in additional revenue.
Tobacco and nicotine will be further taxed to raise an estimated $100 billion, while $16 billion will be brought in by changing the rules to “treat cryptocurrency in the same way as other financial instruments.”
Companies will also be prevented from shifting profits to tax havens abroad to avoid paying their share in the US.
The plans are an important phasing out of the austerity measures implemented under Trump in 2017.
White House spokesman Andrew Bates said the proposal “makes significant progress in making sure our economy rewards work, not just wealth.”
He added that it fulfills Biden’s promise to repeal Trump’s tax cuts without targeting lower-income households.