Biden wants to increase the corporate tax rate of the % to the 28%. In addition, it seeks to increase the maximum rate of individual income tax that would go from % to the 39, 6%
Photo: Vita Vilcina / Unsplash
Tuesday, October 22
Infrastructure Plan: despite the bipartisan agreement, tax increases may come to the richest
Despite the fact that the Infrastructure Plan has an agreement agreed by the Republicans and Democrats , where it was agreed to reduce the social budget burden that would benefit the implementation of the American Families Plan, there are issues that continue to be part of President Joe Biden’s agenda that will be sought to be approved in a context other than infrastructure.
One of them is the one regarding the tax hike for the richest and large corporations that exists throughout the United States. One of the reasons why the Republicans did not accept the approval of the Infrastructure Plan had to do with the tax issue, since opponents do not share the idea of raises as proposed by the White House .
Although the bipartisan agreement does not make a proposal to increase the tax rates for the wealthiest, the Democrats can resort to budget reconciliation so that the issue transits and with it can put into effect tax increases for companies and the richest proposed by President Joe Biden.
It is clear that the purpose of the White House is to guarantee the budget for social welfare, which almost represents $ 4 trillion in additional expenses for strategic items for the current Democratic administration such as infrastructure, green energy, development of new technologies, among others.
Because of how the bipartisan plan is structured, the budget includes around $ 1.2 billion dollars earmarked for new spending, more than $ 2 billion less than Biden raised . So the budget reconciliation bill could add roughly the remaining $ 2 trillion earmarked to achieve presidential goals.
By how the scenario looks, this move will allow three tax increases. The first would be of a commercial nature. Biden wants to increase the corporate tax rate of the 21% to the 28%. The second has to do with the maximum rate of individual income tax that would go from 37% to the 39, 6%, figure that was cut by Republicans in 2017 .
Finally, the third tax proposal is occupied by the tax rate on capital gains. In this section, Joe Biden and the Democrats seek to increase the range of the maximum rate, that is, from 20% to the 39, 6%, this percentage is intended for people who earn more than $ 1 million per year.
These three tax movements are possible to approve if the Democrats make use of the budget reconciliation, since by being a majority in the corresponding Committee, they can displace the Republicans at the time of the vote. Both Biden and the ruling party have said that they do not seek to affect the middle classes, much less the lower classes. .
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