House Democrats Outline Tax Increases for Wealthy Businesses and Individuals

[riversedge]

Source: nytimes




The draft proposal includes raising the corporate tax rate to 26.5 percent for the richest businesses to help pay for President Biden’s sweeping expansion of the social safety net.


Published Sept. 12, 2021Updated Sept. 13, 2021, 12:13 a.m. ET

WASHINGTON — Senior House Democrats are coalescing around a draft proposal that could raise as much as $2.9 trillion to pay for most of President Biden’s sweeping expansion of the social safety net by increasing taxes on the wealthiest corporations and individuals.

The preliminary proposal, which circulated on and off Capitol Hill on Sunday, would raise the corporate tax rate to 26.5 percent for the richest businesses and impose an additional surtax on individuals who make more than $5 million.

The plan could be a critical step for advancing the $3.5 trillion package, which is expected to include federally funded paid family leave, address climate change and expand public education. While it is unclear whether the entire House tax-writing committee supports the proposal, it suggests plans to undo key components of the 2017 Republican tax law, although some provisions fall short of what Mr. Biden proposed earlier this year.

But the revenue provisions outlined in a document obtained by The New York Times and reported earlier by The Washington Post fall short of fully financing the entire package.

Democrats are cobbling together, despite promises by Mr. Biden and Democratic leaders that it would be fully paid for in order to assuage concerns from moderates in their caucus.


People briefed on the details cautioned that the plan was still in flux. The committee is scheduled to convene this week to continue work on the legislation and the Senate returns on Monday, as Democrats aim to reconcile their policy differences by the end of the month.

Read more: https://www.nytimes.com/2021/09/12/us/politics/house-democrats-taxes.html?smtyp=cur&smid=tw-nytimes

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It it a start. But the Senate is another creature

Link to tweet

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Representative Richard E. Neal of Massachusetts, the top Democrat on the Ways and Means Committee, left, had been quiet about his own preferences for the legislation.Credit...Tom Brenner for The New York Times

[gab13by13]

1. Wow, the GQP isn't going to like this,

a reverse crony capitalism. The next thing you know corporations won't be allowed to buy politicians, anyone thinking of who I am thinking of?

[Raven123]

2. Good. This is how you fight.

[KS Toronado]

3. Wealthy Businesses and Individuals should be happy...

We're not reverting to Ike's tax rates, back when America was great.

Dwight D Eisenhower, Corporate Tax Rate: 90%

Why? Because high corporate tax rates create incentive for big business to spend earnings and expand (ie: new
locations, new hires, new equipment, and product R&D) which are deducted from taxable earnings. Thus driving
reported wealth into a lower tax bracket. Better to spend a majority of earnings on expansion than to horde it
and pay Uncle Sam 90% of it. It's not communism, it's responsible economics.

[Evolve Dammit]

4. Yes. Call it the Eisenhower 2021 Plan and bring back a 90 plus percent on the uber rich.

[chowder66]

5. Wouldn't the business just pass the costs to the customers?

Wouldn't the rich just hide their earnings? What if they don't pay? Many don't anyway.

[Raven123]

6. Do you have an alternative suggestion?

A robust IRS would be helpful for compliance

[chowder66]

7. No, I don't. That's why I put question marks at the end.

[chowder66]

10. I agree about the IRS. Thanks.

[KS Toronado]

8. Businesses need to keep their prices competitive in the marketplace

in order to stay in business, it's just less money going into the shareholder's pockets. Plus all their competitors
will be in the same boat with higher taxes.

[chowder66]

9. Thanks. Good points. nt

[IronLionZion]

11. And increases on capital gains and incomes above $5 million

these are modest increases but the GOP are still squealing as if it's some socialist plot to kill jobs.

WaPo link for those with access https://www.washingtonpost.com/us-policy/2021/09/12/manchin-sanders-reconciliation/

[wryter2000]

13. My guess

People making $5 million + a few thousand will pay very little more. The people who make $1 billion will pay a lot more.

3...2...1... cue Manchin. "No way I can support this huge tax increase."

[IronLionZion]

16. A 14 cent increase in the price of a pizza puts me out on the street

which is the cost for Papa Johns to provide health insurance for their workers.

[wryter2000]

17. It thought it was a quarter

I'll never eat Papa John's again. Of course, I never did before, either.

[zanana1]

12. How much do you wanna bet that Joe Manchin won't like it?

[wryter2000]

14. You were one minute ahead of me

Must type faster.

[Steelrolled]

15. 5 million is now the threshold for wealthy?

Think of all the people struggling, trying to get by on 2 or 3 million.

[wryter2000]

18. Won't anyone think of their children?

[IronLionZion]

19. I wish I were rich enough to be impacted by Biden tax plans