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Democrats try delicate tax maneuvers for $3.5 trillion bill – The Denver Post – Denver, Colorado

Denver, Colorado 2021-09-14 22:57:39 –

Washington — House Democrats on Tuesday have begun serious work to implement President Joe Biden’s vast spending plan, but Biden earns more than $ 400,000 from Americans to pay for it. You only have to come, so you need amazing legislative agility to get there a year.

Republicans, who vowed to oppose the plan, were angry at the tax cuts they had drawn as a subsidy to the wealthy elite, rather than helping the poor middle class. Electric cars have become a symbol of the rally as the overtones of class struggle echo throughout the committee’s sessions.

Democrats raise maximum tax rate for individuals earning more than $ 400,000 ($ 450,000 for couples) to 39.6%, in addition to a 3% additional tax on wealthy Americans with adjusted incomes in excess of $ 5 million annually I am proposing to bring it back. For large companies, this proposal will raise the corporate tax rate on annual income for companies over $ 5 million from 21% to 26.5%.

“See, I don’t want to punish someone’s success, but wealthy people are too long to ride for free at the expense of the middle class,” Biden tweeted Tuesday. “I’m going to go through one of the biggest middle-class tax cuts ever — paid by getting top people to pay their fair share.”

The range of income from the wealthy was even hung on the signboard at the ultra-chic Met Gala held in Manhattan on Monday night. House progressive leader Alexandria Ocasio Cortez wore a white gown with the words “Tax the Rich” in huge red letters on her back (designer Aurora James).

Low- and middle-income earners as the House Ways and Means Committee delves into tax debate and drafting to fund and support Biden’s ambitious $ 3.5 trillion reconstruction plan, including spending on childcare. Tax support is provided, not tax increases. , Healthcare, education, climate change initiatives.

This is the beginning of a daunting moment for Biden and his ally parliament assembling a “build back better” package that equates to the great society of the 1960s and even the New Deal of the Great Depression of the 1930s. It is a bid for.

The proposal requires a $ 273 billion tax cut on renewable and “clean” electricity. This includes $ 42 billion for electric vehicles and $ 15 billion for “green workforce” and environmental items. The increase in the child tax deduction to $ 300 / month for children under 6 and $ 250 / month for children aged 6 to 17 under the Coronavirus Relief Act earlier this year has been extended to 2025. increase.

Meanwhile, the House Energy and Commerce Committee has made proposals to promote clean electricity, investment in electric vehicles, and other climate change measures. A 30-27 vote in line with party policy advances energy measures as part of Speaker of the House Nancy Pelosi’s goal of approving a huge overall package.

The $ 456 billion slice of the energy panel is of paramount importance in addressing climate change and greenhouse gas emissions, as well as tax incentives discussed by the Commission on Methods and Means.

The Democratic Party’s proposal would invest $ 150 billion in grants to encourage utilities to provide “clean electricity” from renewable sources such as wind and solar. Power suppliers will receive a grant based on the amount of clean electricity they provide as part of Biden’s plan to stop the emission of fossil fuels that adversely affect the climate from US power plants by 2035. ..

All Republicans are expected to vote against the legislation as a whole. But Republicans are largely on the sidelines because they rely on a budgeting process that allows Democrats to approve their proposals if they can get a small majority in parliament.

Democrats do not have enough votes to enact Biden’s agenda without Republican support.

But Joe Manchin of West Virginia, one of the Democratic senators who is critical to the fate of the bill, said he needed to cut costs from $ 1 trillion to $ 1.5 trillion to get his support. Stated. Manchin also said he did not support many of the clean energy and climate regulations promoted by the Democratic Party.

A day ago, Biden seemed to respond to concerns about the size of the plan, saying it could cost as much as $ 3.5 trillion and would spread over a decade as the economy grows.

Republicans, who accused the Democratic Spending Review of socialism and murder, also followed Tuesday’s proposed tax cut.

The Democratic Party is proposing to extend the current tax credit for electric vehicles to five years, adding an additional $ 4,500 if the vehicle is manufactured by a member and an additional $ 500 if the battery is made in the United States. increase. However, the Republican Party portrayed the electric car as a taxpayer-funded bourgeois bohemian accessory. This is the latest symbol of excess.

“Speaking of exorbitant green welfare, the bill will allow nearly millionaire families to buy $ 75,000 in beamer, jaguar, or Benz luxury electric cars. Texas, Panel’s Senior Republican Party Employee. “Why are blue-colored workers, nurses, teachers, and firefighters subsidizing wealthy and large companies with $ 1/4 trillion in green welfare checks?”

D-Mich Rep. Dan Kildee said. “We do not intend to subsidize the purchase of the wealthiest luxury cars.” The law states that the selling price of the vehicle ($ 55,000 for sedans) and the income of the purchaser (600,000 for the head of household). It imposes an upper limit on the adjusted total income of the dollar).

This proposal strikes another nerve for Republicans by adding incentives for vehicles and batteries manufactured by trade union workers-support for Democratic trade unions.

When they passed the bill, a majority of Democratic Commission members tightened credit restrictions on electric vehicles and other tax incentives accused of hitting the progressive Democratic Party’s proposed “Green New Deal.” Voted against a series of Republican amendments calling for the elimination of.

The property tax proposal has been proposed to raise about $ 2.9 trillion (provisional estimate), which would be of great help in paying the $ 3.5 trillion bill. The White House expects long-term economic growth from spending plans to generate an additional $ 600 billion to make up for the difference.

To achieve the Democratic goal, much of the income raised comes from higher taxes on businesses and top-income earners, raising the tax rate for individuals from the current 37% to 39.6%.

The Democratic Party is proposing to wealthy individuals to raise the maximum tax rate on capital gains for those who earn more than $ 400,000 a year from the current 20% to 25%. The inheritance tax exemption, which doubled to $ 11.7 million for individuals under the Republican tax law of 2017, will return to $ 5 million.

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The Associated Press writer Matthew Daly contributed to this report.

Democrats try delicate tax maneuvers for $3.5 trillion bill – The Denver Post Source link Democrats try delicate tax maneuvers for $3.5 trillion bill – The Denver Post

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