Senate Democrats float taxes on stock buybacks, plastics to pay for spending plan

[Yo_Mama_Been_Loggin]

Senate Finance Committee Democrats are looking at several tax options for paying for their social-spending bill that have not been previously proposed by the White House, including taxes on stock buybacks and materials used to make single-use plastics, according to a document obtained by The Hill.

The document comes as Democrats are in the process of crafting legislation that is expected to include up to $3.5 trillion in spending and tax cuts in areas such as child care, health care and clean energy. Democrats want to offset the cost of the bill through tax increases on wealthy individuals and corporations.

It remains to be seen how many of the revenue-raising items listed in the document ultimately end up in the spending bill.

The Finance Committee is considering a number of ways to raise revenue to pay for the spending bill. Some of these are similar to proposals the Biden administration has offered, including those to raise the top individual rate and the corporate tax rate.

https://www.msn.com/en-us/news/politics/senate-democrats-float-taxes-on-stock-buybacks-plastics-to-pay-for-spending-plan/ar-AAO4GiC

[SoonerPride]

1. I like how we are hamstrung with making things budget neutral and Republicans don't give a shit

We should just pass it and say if Republicans want to pass a tax hike to pay for it because they suddenly care about debt they can propose the legislation

[ck4829]

2. A tax on stock buybacks - Why hasn't this been discussed before?

A stock buyback’s primary function is market manipulation-lite.

[MichMan]

3. Will the tax on plastics only apply to those making over $400k ?

[ProfessorGAC]

4. I Like Both Ideas

But, I really like the tax on plastics.
Recycling plastic is difficult because the reused plastic would have, by definition, broken chains.
The tensile strength of new product with more than 2-3% recycled material is very compromised. Hence, inferior product.
But, if everything is hot melted the smaller chains get incorporated into the new crosslinking. The problem of tensile strength is dramatically reduced.
Problem is, the process is EXPENSIVE. There's no economic driver to do it, as margins on plastics are already very thin.
But, a tax on virgin plastics creates the economic incentive to invest in more hot melt mixing & extrusion, and offsets the energy penalty for recycling.
Until we technologically achieve unheard of low energy costs, that energy penalty is unavoidable.
We need an extrinsic motivation (the tax) to encourage better recycling.

[crickets]

5. +1