U.S. Democrats: Propose higher taxes on the wealthy

October 29, 2021

On October 17, 2021, the proposal for more taxes on the wealthy to pay for Biden’s plan was posted on https://proceso.hn/democratas-proponen-mas-impuestos-a-los-ricos-para-pagar-por-el-plan-de-biden/. Let’s see:

1. Proposal to raise taxes on multimillonaires

U.S. Senate Democrats unveiled their proposal to raise taxes on multimillionaires to pay for U.S. President Joe Biden’s big social spending plan.

The proposal consists of changing the tax code, which would affect those earning more than $100 million per year or whose assets are valued at more than $1 billion, according to the Senate Finance Committee Chairman Ron Wyden.

2. Total number affected

If the proposal is enacted, as of 2022, about 700 Americans would have to pay more taxes. Wyden’s proposal includes a new 15% tax on companies with higher incomes.

Multimillionaire Elon Musk spoke out on the matter and pointed out that it could end up harming more modest fortunes if the money of multimillionaires like him runs out if the proposal is approved.

3. Objective of the proposal

The proposal consists in preventing multimillionaires from evading taxes since, at present, these individuals do not have to declare the profits they obtain from their investments to the tax authorities until they sell them. Moreover, those who have shares in the stock market do not pay taxes on their profits, so the new proposal would change this situation.

4. Negociationson social spending package

According to the aforementioned website, the Democrats have not yet reached an agreement on what will be included in their social spending package, which was initially valued at 3.5 billion dollars, but its size has been significantly reduced at the request of the centrist flank of the party. What is now expected is that the plan will be valued at $1.75 billion and will be used for spending on health care, child care, and climate change, etc.

Source: Proceso Digital 29/10/21