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House Democrats are afraid to tax millionaires – it’s a costly mistake | Robert Reich

House this week Democratic Party Announced a proposed tax increase to fund Joe Biden’s $ 3.5 trillion social policy program.

The biggest surprise is that they didn’t chase the huge accumulation of top wealth. It represents the largest share of the economy in more than a century.

You might have thought that Democrats were eager to tax the 660 billion billionaires in the United States. $ 1.8 billion since the start of the pandemicAmount that can fund half of Biden’s plans and leave millionaires as rich as they were before the pandemic began.

Of Elon Musk $ 138 billion For example, the increase in pandemics will cover 5.5 million community college students’ tuition and provide food to 29 million low-income public school children, while Musk will be $ 4 billion more than before Covid. Will also be wealthy.

However, senior House Democrats have decided to increase their income in the traditional way of taxing their annual income rather than huge wealth. They aim to raise the highest income tax rate and apply a 3% surcharge on income above $ 5 million.

The dirty little secret is that the super rich should not live on their salary.

Jeff Bezos’ salary from Amazon $ 81,840 last year, Still he has some rakes $ 149,353 / min From the soaring price of his Amazon stock, this is how he offers five mansions, including one in Washington, DC, which has 25 bathrooms.

House Democrats doesn’t even close the loopholes in the “reinforced foundation at death” with gaps. This allows ultra-high net worth heirs to value stocks, bonds, mansions and other assets at current market prices. Value from the time of purchase.

This loophole allows family dynasties to transfer more wealth to future generations than ever before without being taxed. Talk about American aristocrats.

Biden wanted to close this loophole, but House Democrats barked.

You might also think that Democrats are targeting America’s largest businesses, flooded with cash, but paying a bit of tax. 39 of S & P 500 or Fortune 500 paid No federal income tax from 2018 to 2020 Report a total profit of $ 122 billion to shareholders.

Surprisingly, however, House Democrats have decided to set the corporate tax rate lower than when Barack Obama was at the White House. Democrats even held reduced versions of infamous corporate loopholes, such as private equity “carry-over profits.” And they held a special tax deduction for oil and gas companies.

What’s wrong? The Democratic Party is not lacking in power.They are in one of those rare trilogy when they serve as president and The House and Senate are small but majority.

It’s not economics. Americans have been exposed to Republican “trickle-down” nonsense for decades and are well aware that nothing will trickle down. Billionaires rarely need to grow their property $ 100,000 per minute to be innovative. And as I emphasized, there is more money at the top than at any point in the last century and anywhere else.

What’s more, Democrats need income to fund their ambitious plans to invest in childcare, education, paid family vacation, health care, and climate.

So what’s blocking them?

Simply put, Democrats are reluctant to tax the record wealth of rich and large corporations for the wealth of the rich and large corporations.

Many Democrats rely on their wealth to fund their campaigns. They are also afraid to be the target of a well-funded advertising campaign that accuses them of voting for the “murder” tax.

Republicans sold their souls for financial gain long ago, but the timidity of house Democrats shows how much money even Franklin D. Roosevelt’s party speaks loudly these days.

That’s because it’s much less on the other side. By early 2021, corporate groups and businesses spent nearly $ 1.5 billion on lobbying, while trade unions spent about $ 22 million and public interest groups spent $ 81 million. OpenSecrets.org.

Progressive House Democrats still have a say. Senator Democrats are not weighted. But there are reasons for concern.

The looming debate over taxes is actually the debate over the distribution of wealth and power. As that allocation becomes more grotesquely imbalanced than ever, this debate will grow bigger and bigger over American politics.

Behind it is this simple but important question. Which party represents the average worker and which party is shilling for the rich? Democrats, be careful.

House Democrats are afraid to tax millionaires – it’s a costly mistake | Robert Reich

Source link House Democrats are afraid to tax millionaires – it’s a costly mistake | Robert Reich

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