Democrats Propose Partially Abolish Donald Trump’s Tax Reform and Raise Taxes on the Rich and Business

Democrats on a U.S. House of Representatives committee on Monday proposed one tax hike for the richest and for companies earning more than $ 5 million in the year.

Democrats hope this tax hike serves for raise $ 2.9 trillion over 10 years and pay for U.S. President Joe Biden’s $ 3.5 trillion social spending program, which his party wants to pass in Congress before the end of the month.

This plan has not yet been drafted and several Congressional committees are now looking at what exactly to include in this plan.

In this context, Democrat Richard Neal, chairman of the House Media and Arbitration Committee, revealed this Monday a proposal that would serve to abolish part of the tax reform passed in 2017 by Congress Republicans under the Donald Trump Government (2017-2021).

Specifically, Neal vol replace the fixed rate of 21% that all companies pay in taxes for a gradual structure, so that companies that earn less than $ 400,000 a year pay 18% in taxes, those that have profits of up to to 5 million by 21% and those that exceed these 5 million by 26.5%.

This proposal, however, is far from the fixed rate of 28% proposed by U.S. President Joe Biden, and is still below the 35% that was in place before Trump’s tax reform.

Likewise, Neal’s plan would raise from 37% to 39.6% the amount of taxes paid by those individuals who earn more than $ 400,000 a year, or 450,000 in the case of married couples.

These figures are also more far-reaching than Biden’s proposal that he wanted to set the tax cap at $ 452,700 a year for those who file their income tax returns individually, and at $ 509,300 for marriages.

Neal’s plan has not yet received the support of all Democrats, the more moderate wing is reluctant to raise taxes for companies or higher incomes.

However, the gap between the richest and the middle and lower classes of the US has widened during the pandemic and it already reaches levels not seen in half a century.

In fact, during the first year of the pandemic, American billionaires saw their wealth increase by $ 1.3 trillion, a growth of almost 45%, with some of them multiplying their fortune by up to one billion. 600%, according to a report by the Institute for Policy Studies (IPS), a Washington-based center of progressive thought.

(With information from EFE)

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