House Democrats Scale Back Biden’s Tax Increase Proposals
The House Ways and Means Committee released a bill this week which proposes taxing wealthy individuals to fund Democrats’ $3.5 trillion social safety net legislation.
While the bill would mark a drastic increase in taxes for some, Democrats have actually taken a step back from President Joe Biden’s tax increase proposals.
Democrats are proposing raising the tax rate for those earning above $5 million from 21 percent to 26.5 percent. Biden had initially proposed a corporate tax rate of 28 percent.
The Ways and Means Committee also proposed raising the top capital gains rate from 20 percent to 25 percent. Biden proposed raising it higher.
Steve Wamhoff, director of federal tax policy at the Institute on Taxation and Economic Policy, commented: “The Ways and Means proposal does not go as far as the president in many regards, and it would leave some huge problems in the tax code.”
Senate Finance Committee Chairman Ron Wyden (D-Ore.) said, “It’s important to address the fact that billionaire heirs may never pay tax on billions in stock gains.”