Democrats Move to Raise Taxes on Businesses, Top Earners
Headline Roundup September 16th, 2021
Democratic lawmakers are acting to raise taxes on businesses and top earners, while also attempting to pass the Biden administration's $3.5 trillion spending plan through Congress and into law. Democrats on the House Ways and Means Committee recently proposed several key tax changes: raising the corporate tax rate for large companies from 21% to 26.5%; raising the top capital gains tax rate from 25% to 20%; and raising the top individual income rate from 37% to 39.6%. Meanwhile, Democrats say the pandemic-era Child Tax Credit will help to reduce tax burdens for the lower- and middle-class. Many Republican lawmakers have criticized the proposal, saying it could worsen inflation and unemployment.
Coverage from left-rated outlets often concentrated on how the tax hikes could help lower-income people; some also highlighted pushback from moderate Democrats that could prevent the tax proposals from becoming law. Reports from right-rated sources usually framed the proposals in a negative light, and focused on purportedly wasteful parts of the Democrats' spending plan. Some right-rated voices accused the tax plan of harming small businesses; others argued that it still wouldn't be enough to cover the trillions of dollars spent during the pandemic and slated for future spending by Democrats.
House Democrats will consider as much as $2.9 trillion in tax hikes for the next 10 years — mostly on the extremely wealthy and corporate America — as they scramble for ways to pay for President Biden's $3.5 trillion infrastructure and social spending plan.
Why it matters: A draft proposal from the Ways and Means Committee, which ricocheted across Washington Sunday night, previews epic fall fights between Democrats and some of the best-armed lobbies in America.
Driving the news: The summary, first reported by The Washington Post, includes a top personal rate of 39.6%,...
Low-income earners would get a big tax break if legislation proposed by House Democrats this week becomes law, while the tax burden for top earners would get heavier.
Taxpayers making above $1 million would see an 11% tax increase to their federal taxes under the House Ways and Means Committee plan, according to an estimate by the Joint Committee on taxation. On the other end, the tax liability for those making below $40,000 would drop by at least 24% — with much of the break coming in the form of tax credits.
“The plan very effectively...
The NAACP and 27 other liberal groups on Thursday warned Democratic leaders not to back off of plans for higher taxes because higher taxes would improve racial justice.
The groups, which included the Movement for Black Lives and the National Immigration Law Center, made their case for large tax hikes on corporations and the wealthy in a letter to Senate Majority Leader Charles E. Schumer, House Speaker Nancy Pelosi and the Democratic chairmen of the House and Senate‘s tax committees.
“We write to make clear how important it is to communities of color that Congress enact a robust budget...