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Tuesday, January 31, 2023

Democrats try a subtle tax strategy for the 3.5 trillion dollar bill

WASHINGTON – The Democrats in the House of Representatives began their serious work on Tuesday to try to implement President Joe Biden’s huge spending plan, but to achieve this goal requires extraordinary legislative flexibility, because Biden has said that the income to pay for the plan can only come from Americans with an annual income of more than $400,000. One year.

Republicans who vowed to resolutely oppose the plan turned their anger towards tax relief proposals that they described as subsidies to the wealthy elite rather than assistance to the poor and middle class. As the color of class war echoed in committee meetings, the electric car became a symbol of assembly.

The Democratic Party proposes that, in addition to imposing a 3% surcharge on wealthy Americans with annual incomes of more than $5 million, the maximum tax rate for individuals with annual incomes of more than $400,000 (or $450,000 for couples) should be raised to 39.6%. For large companies, the proposal will increase the tax rate for companies with annual revenues of more than $5 million from 21% to 26.5%.

Biden said on Twitter on Tuesday: “Listen, I don’t want to punish anyone for success, but for a long time, the rich have been getting free riders at the expense of the middle class.” “I intend to pass the largest middle class ever. One of the tax cuts is to pay by letting high-level people pay their due share.”

On Monday night, at the ultra-fashionable Met Gala in Manhattan, the income of the rich was even advertised. DN.Y. Representative Alexandria Ocasio-Cortez (Alexandria Ocasio-Cortez) is a leading House progressive. She wore a white dress with huge red letters on the back “To the rich Taxation” (designer Aurora James).

For low- and middle-income people, as the House Ways and Means Committee in-depth debate and draft tax proposals to fund and support Biden’s ambitious $3.5 trillion reconstruction plan, which includes childcare spending, tax assistance is provided instead of increasing, Healthcare, education and climate change.

For Biden and his allies in Congress, this is a daunting moment for the opening of bids, as they assembled what some people think is equivalent to the great society of the 1960s and even the New Deal of the Great Depression of the 1930s. “A package plan.

The proposal calls for $273 billion in tax relief for renewable energy and “clean” electricity, including $42 billion for electric vehicles and $15 billion for “green workforce” and environmental projects. Earlier this year in the coronavirus relief legislation, the child tax credit was increased to US$300 per month for each child under 6 and US$250 per month for each child aged 6-17, and will be extended to 2025.

At the same time, the House Energy and Commerce Committee put forward proposals to promote clean electricity, electric vehicle investment and other climate clauses. As part of the goal of the Speaker of the House of Representatives Nancy Pelosi to approve the huge overall plan, the energy measures were moved forward with a 30-27 vote in accordance with the party line.

The $456 billion portion of the Energy Commission is the most important part of tackling climate change and greenhouse gas emissions, as well as the tax breaks debated by the fundraising committee.

The Democratic Party’s proposal would invest $150 billion in grants to encourage power companies to provide “clean power” from renewable energy sources such as wind and solar. As part of Biden’s plan to stop US power plants from emitting climate-damaging fossil fuels by 2035, electricity suppliers will receive grants based on how much clean electricity they provide.

All Republican lawmakers are expected to vote against the overall legislation. But Republicans are largely marginalized because Democrats rely on the budget process, which will allow them to approve proposals on their own – provided they can obtain a small majority in Congress.

Without the support of the Republican Party, the Democrats have no extra votes to set Biden’s agenda. They won 50-50 in the House of Representatives and the Senate, with Vice President Kamala Harris as the tiebreaker.

But a Democratic senator, Joe Manchin of West Virginia, who is critical to the fate of the bill, said that costs need to be cut to between $1 trillion and $1.5 trillion to win his support. Manchin also said that he would not support some clean energy and climate provisions promoted by the Democratic Party.

A day ago, Biden appeared to have responded to concerns about the size of the plan, saying that the cost “may” be as high as $3.5 trillion and that it will be shared with economic growth for more than 10 years.

Republican legislators condemned the Democratic Party’s spending plan as a socialist and job-stuffing plan, and proposed tax cuts on Tuesday.

The Democratic Party proposes to extend the current tax credit of $7,500 for electric vehicles to five years. If the car is made by union workers, it will be extended by $4,500, while the US-made battery will be extended by $500. But Republicans portray the electric car as a bourgeois bohemian accessory, subsidized by taxpayers, which is the latest sign of excessive consumption.

“Speaking of heinous green benefits, this bill allows nearly millionaire families to buy $75,000 worth of Beamer, Jaguar or Benz luxury electric cars – and their maids are forced to provide them with a tax subsidy of $12,500. “Rep. Kevin Brady said of Texas, a senior Republican in the group. “Why do blue-collar workers, nurses, teachers, and firefighters use a quarter trillion dollar green benefit check to subsidize wealthy big companies?”

Wait, Michigan Representative Dan Kildee said. “We will not subsidize the wealthiest people to buy luxury cars.” The legislation does set a ceiling on the sales price of vehicles ($55,000 for cars) and the income of buyers (the adjusted total income of a household head is $600,000).

The proposal dampened another nerve of Republicans by increasing incentives for vehicles and batteries made by union workers—the Democratic Party’s support for unions.

When they struggled to pass legislation, most members of the Democratic committee voted to veto a series of Republican amendments aimed at tightening restrictions on electric car credit and removing other tax breaks that have been condemned as an improvement to progress. The “Green New Deal” proposed by the Democratic Party sneered at it.

The tax proposal in the House of Representatives is thought to potentially raise about US$2.9 trillion-preliminary estimates-which will greatly help pay for the US$3.5 trillion legislation. The White House is counting on long-term economic growth from the spending plan to generate an additional $600 billion to make up the difference.

In order to achieve the goals of the Democratic Party, most of the income will come from higher taxes on companies and the highest earners, and the personal tax rate will be increased from the current 37% to 39.6%.

For the wealthy, the Democratic Party proposes to increase the maximum capital gains tax rate for people with an annual income of $400,000 or more from the current 20% to 25%. According to the 2017 Republican Tax Law, the personal inheritance tax allowance doubled to $11.7 million and will be restored to $5 million.

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Associated Press writer Matthew Daley contributed to this report.

World Nation News Desk
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