The progressive tax thrust of the rich gains ground

The progressive trend to raise taxes for the rich is gaining momentum.

Sen. Elizabeth WarrenElizabeth Ann WarrenGun Control: Campaigning Against Legislation Booker defends a middle-of-the-road approach to health care: "We will fight to make it happen" Democrats defend the electoral appeal of "Medicare for All" PLUS (D-Mass.), Which has already proposed a new wealth tax to raise funds for various new government programs, unveiled Thursday a plan to expand social security by creating two new taxes on wages and salaries. investment of the wealthy Americans.

The proposal comes as Warren enjoys a long run in the presidential race that raised it in polls and put it alongside the former vice president. Joe BidenJoe BidenBiden deplores whites' supremacy in keynote address on civil rights movement's website Gun Control: Campaign against Sunday's Legislative Agenda – Weapons dominate after democratic debate MORE during the democratic debate last week.

Separately, Sen. Ron WydenRonald (Ron) Lee WydenKey Democratic Senator Unveils Proposal to Tax Rich People in Night Health Care: Trump Calls for Ban on E-flavored Electronic Cigarettes | Purdue Pharma moves closer to an agreement with states and cities for its alleged role in the epidemic of opioids | Senate panel cancels vote on key spending bill as Pelosi expects progressives on prescription drug plan MORE (Ore.), The largest Democrat on the Senate's tax drafting committee, has tabled his own proposal to prevent the rich from avoiding taxes on their investment gains.

Since the beginning of the year, much of the debate on taxation among Democrats has been about how much and how best to raise taxes for the rich.

Democrats have shown interest in raising taxes on high-income, high-net-worth individuals to tackle wealth inequities and raise revenues to finance priority spending.

Ideological differences between centrists and progressives characterized the presidential race, with Biden on the right of Warren and fellow Progressive Sen. Bernie SandersBernie SandersGun Control: Campaigning Against Legislation Booker defends a middle-of-the-road approach to health care: "We will fight to make it happen". Sunday shows in preview: Democratic candidates make the round after debate More (I-Vt.).

Some Democrats have expressed concern that their party will lose the White House to the benefit of President TrumpDonald John TrumpHarris denounces Kavanaugh's fictitious nomination process and calls for his indictment after the allegation of sexual misconduct. Celebrating "Hispanic Heritage Month" at Trump's Age Do not play Charlie Brown at Lucy, an Iranian MORE if they appoint a candidate too far left.

Yet this narrative masks the fact that Democratic presidential candidates have proposed solutions to raise taxes for the rich.

Developments have encouraged liberal groups to demand higher taxes for the rich.

"It is really encouraging to see the most democratic in the Senate Finance Committee, as well as one of the most publicized presidential candidates, present proposals on the taxation of the rich," said Maura Quint, executive director of the group. Liberal Tax March.

Warren has been a leader in the field of the Democratic presidency of 2020 by demanding higher taxes for the rich.

She regularly talks about the proposed January wealth tax, which would impose a new tax on people whose net worth is over $ 50 million.

His new social security proposal would impose a 14.8% tax on individual wages over $ 250,000 – split between the employee and the employer. Families with incomes over $ 400,000 would pay a new tax of 14.8% on net investment income.

Warren told CNN Shortly after the debate, his social security system "will literally take millions out of poverty."

"And you know who will pay for it? The first two percent, "she added.

The white paper released Thursday by Wyden shows how congressional Democrats are also preparing plans to strike the rich.

His plan would revert to how capital gains are taxed to increase the solvency of social security.

According to Wyden's proposal, capital gains and ordinary income would be taxed at the same rates. In addition, those with an income greater than $ 1 million or an asset of $ 10 million over three consecutive years would be subject to new anti-deferral rules, such as the obligation to pay taxes annually. on investment gains derived from marketable assets and the obligation to pay a control charge of non-tradable assets when such investments are sold or transferred.

Under current law, people must not pay capital gains tax before selling their investments.

"Addressing this possibility of tax deferral" must be a priority for tax reformers in 2021, "said Wyden at an event organized Thursday by the Center's Action Fund. for American Progress (CAP). The Oregon Democrat would likely become chairman of the Senate Finance Committee if Democrats regained control of the Senate after the 2020 election.

Wyden's plan had been eagerly awaited by many left-leaning tax experts, as the senator announced in April that he planned to publish an annual document on the taxation of gains made by wealthy investors.

Frank Clemente, executive director of Americans for Tax Fairness, said it is "historic" that the most democrat on the finance committee presents a proposal as progressive as that of Wyden and addresses structural reforms in the tax system.

"It's a game changer," Clemente said. "This is the direction in which progressive tax reform must go."

Many Democratic presidential candidates across the ideological spectrum have called for capital gains and ordinary income to be taxed at the same rate, but experts say the move alone may not generate much revenue, because investors have the opportunity to defer the realization and payment of taxes. on their capital gains.

"If you really want to equalize capital gains and ordinary rates, the best solution is to start looking at provisions that reduce or eliminate the tax benefits of the deferral," said Lily Batchelder, professor at the Faculty of Economics. University of New York Law, CAP. Event of the fund of action. "And I think that's why Senator Wyden is looking at this proposal and moving it forward."

Progressives say it makes sense, from a political and political point of view, to propose the use of income from increasing wealth taxes for social security. Reserves of the Social Security Trust Fund are expected to be exhausted by 2035.

Nancy Altman, president of Social Security Works, said that it was "entirely justifiable" that Warren and Wyden devote to Social Security the proceeds of increased taxes on unearned incomes of the rich, because income and wealth inequalities are one of the reasons the program should be missed.

Altman noted that Wyden and Warren are not the first legislators to propose using tax revenues from rich people's non-wage income for social security.

Sen. Chris Van HollenChristopher (Chris) Van HollenSenators lobby Trump to help end the humanitarian crisis in Kashmir Democrat candidates set the tone for a Senate of the National Climate Bank Democrats push Trump to permanently close the detention center for migrants MORE (D-Md.) Introduced in June a law that would reduce the inheritance tax to its 2009 parameters and deposit the income generated by this change in the trust fund of social security.

And Bernie Sanders, Democratic presidential candidate and Vermont senator, passed legislation to expand and expand the solvency of the pension program, which would subject all incomes above $ 250,000 to the security payroll tax. social. Sanders' bill is co-sponsored in the Senate by two other presidential candidates, Sens. Kamala HarrisKamala Devi HarrisHarris denounces Kavanaugh's fictitious nomination process and calls for his indictment after the allegation of sexual misconduct. Firearm Control: Campaign or Legislation, Booker Advocates Intermediate Health Care Approach: "We Will Fight to Get There" CONTINUED (D-Calif.) And Cory BookerCory Anthony BookerSunday Shows – Weapons Dominate After Democratic Debate Booker Defends Intermediate Health Care Approach: "We Will Fight To Get There" Sunday Show Preview: Democrat Candidates Make Round After Debate MORE (D-N.J.), And a version of the bill in the House is co-sponsored by the presidential candidate Rep. Tim RyanTimothy (Tim) John RyanReport of 12:30 pm on Hill: House Committee approves powers of dismissal Tim Ryan launches album "on & # 39; Spotify to present the guide to the main debate of the 2020 platform: before all the democratic debate of September MORE (D-OH).

Michael Linden, a member of the leftist Roosevelt Institute, said that proposals to tax the rich tend to garner public support, but linking them to social security could make them even more famous.

"When taxes are tied to a specific element, they can often become more popular. And nothing is more popular than social security, "he said.

Trump's re-election campaign has criticized the Democrats for proposing tax increases – particularly the repeal of Trump's tax cuts, which could lead to tax increases for the middle class.

"Make no mistake: the only thing the Democrats know about taxes, is that they will increase them," said Trump campaign spokesman Daniel Bucheli in a statement.