Remember a few months ago when President Joe Biden proposed to tax the wealthiest individuals and high-end corporations? Well, that plan is still in the works. On Sunday, President Biden invited Senate Majority Chuck Schumer to his home in Delaware and discussed the potential proposal. Senator Schumer expressed his liking to the proposal with some minor changes. Instead of the original and copious 3.5 trillion dollars, it will be cut to 1.7 trillion, which is still a sweeping amount. The revenue of that amount would be directed towards the social services and climate change package which includes: healthcare and child care among creating strategies for combatting climate change.
With this tax plan, democrats aim to finalize their main source of revenue spending — approximately 700 of the wealthiest Americans. This is seen as a victory because it’s bridging the gap between the working class and the wealthy. The high tax rate would also affect those making more than 400,000 and heighten the tax rate on corporations that would be well off. The plan’s purpose is to utilize excess finances that would be better off invested in healthcare, childcare, and climate change strategies. Extending the revenue of higher tax rates to social services would lift many financial burdens off the working class and low-income class. Now, while this would be a step in the right direction, there has been some opposition to the higher tax rates, primarily from Senator Krysten Sinema (D-Ariz). Despite this, it’s expected that a few Senators and House Democrats will not be on board. Even though that may affect its passage, Democrats and the President remain “cautiously optimistic” surrounding the possible compromise around the Billionaire tax proposal.
Moreover, the advocation for taxing the wealthy is not new. Democrats settled corporations tax raises but are now relying more on the billionaires of America — less than 1,000. As of right now, the rich do not have to pay taxes on their assets such as real estate, stocks, artwork as they only get taxed when they’re sold. However, this proposal would require them to pay the “increased value” of stocks; and assets of that manner. With President Biden behind this, the plan has an appeal but is still tentative. Nancy Pelosi states that realistically speaking, it would bring around 200 to 250 billion dollars from billionaires due to some disapproval. With that being said, members will have to search for other sources of revenue to pay the remaining end of the proposal. Even though it seems like it only has potential, the plan is in the process of finalization so we have yet to see what unfolds.
This blog post is part of the CIMA Law Group Blog. If you are in need of legal help, the CIMA Law Group is a law firm in Phoenix, Arizona which possesses expertise in Immigration Law, Criminal Defense, Personal Injury, and Government Relations.
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