Democrats propose to partially abolish Donald Trump’s tax reform, raise taxes for rich and corporate

Democrats on a U.S. House of Representatives committee on Monday proposed a higher taxes for the richest and for businesses that earn more than $ 5 million a year. year.

Democrats hope the tax hike will help raise $ 2.9 trillion over 10 years and pay for US President Joe Biden’s $ 3.5 trillion social spending program that his party wants to pass in Congress before the end of the month.

This plan has yet to be drafted and various congressional committees are now considering exactly what to include in this plan.

In this context, Democrat Richard Neal, chairman of the House Ways and Means Committee, revealed on Monday a proposal that would serve to abolish part of the tax reform approved in 2017 by Republicans in Congress under the administration of Donald Trump (2017-2021).

Specifically, Neal wants replace the fixed rate of 21% that all businesses pay in taxes with a progressive structure, so that businesses that earn less than $ 400,000 per year pay 18% in taxes, those with profits up to $ 5 million 21% and those that exceed those 5 million by 26.5%.

This proposal, however, falls far short of the 28% fixed rate proposed by US President Joe Biden, and remains below the 35% that was in effect before Trump’s tax reform.

Besides, Neal’s plan would drop the amount of taxes paid by individuals who earn more than $ 400,000 a year, or $ 450,000 in the case of married couples, from 37% to 39.6%.

These numbers also go further than Biden’s proposal to set the tax limit at $ 452,700 per year for individual filers and $ 509,300 for married couples.

Neal’s plan has yet to gain the support of all Democrats, whose more moderate wing is reluctant to raise corporate taxes or higher incomes.

However, the gap between the wealthiest and middle and lower classes in the United States widened during the pandemic and it is reaching levels not seen in half a century.

In fact, in the first year of the pandemic, US billionaires saw their wealth increase by $ 1.3 trillion – a growth of almost 45%, with some of them multiplying their fortunes by as much as 600. %, according to a report from the Institute for Policy Studies (IPS), a Washington-based center of progressive thought.

(With information from EFE)

KEEP READING: