(RepublicanPress.org) – Democrats continue to push a proposed multi-trillion-dollar spending plan to cover social programs, the climate crisis, and infrastructure. On September 13, House Ways and Means Committee head Rep. Richard Neal (D-MA) unveiled new legislation aimed at creating additional funding to pay for the plan.
The legislation targets the nation’s corporations by significantly rolling back former President Donald Trump’s 2017 corporate tax cuts. The committee’s plan calls for the elimination of a flat corporate tax rate. Instead, companies would pay 18% on their first $400,000 of income. After that, the rate would increase to 21% up to $5 million and top out at 26.5% for any additional earnings.
— The Hill (@thehill) September 13, 2021
The legislation also calls for a reversal of the cut to personal income tax rates signed into law by Trump. Democrats want to raise the rate from 37% to 39.6%. They also propose placing a 3% surtax on individuals with an adjusted gross income (AGI) level exceeding $5 million per year.
Likewise, the bill calls for an increase on capital gains to 25% from its current rate of 20% for “certain high-income individuals.” Democrats would add a 3.8% Obamacare tax on investments bringing the total rate to 28.8% on the nation’s highest earners.
However, with the Senate deadlocked and moderate Democrats refusing to support reconciliation, the Left will need bipartisan support to overcome the filibuster. As of now, it’s unlikely that will happen.
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