The leaked tax bill shows how Democrats want to roll back tax cuts in the Trump era to raise $ 2.9 trillion from wealthy Americans and large corporations.


Richard Neal Nancy Pelosi

Speaker of the House Richard Neale and Speaker of the House Nancy Pelosi. Tom Williams / CQ-Roll Call via Getty Images

  • Following the draft changes obtained by insiders, House Democrats are ready to announce plans to roll back important parts of Trump tax law.

  • The tax hike will generate $ 2.9 trillion in new income from wealthy Americans and large corporations.

  • The draft outlined a corporate tax hike with a new 3% “additional tax” on wealthy Americans.

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House Democrats raises $ 2.9 trillion in tax revenues to fund large social spending plans for large corporations and the wealthiest Americans, according to a proposed proposal circulated among Democrats at House Ways and Means. We are ready to propose a series of new tax increases to raise. A committee acquired by an insider.

America’s top earners and biggest companies have been blamed for tax increases, which is equivalent to the rollback of many provisions approved by President Donald Trump four years ago.

Still, much of the increase is not as aggressive as what President Joe Biden first presented in him earlier this year. Push towards A fairer tax system.

One person familiar with tax law confirmed the contents, but was allowed to remain anonymous because he could not speak publicly. A spokesperson for the House Ways and Means Committee did not respond to requests for comment.

One indicator closely related to Biden’s plans is the highest tax rate of 39.6% for Americans who earn more than $ 400,000 individually and the same tax rate for couples who earn more than $ 450,000 jointly.

But investors didn’t see the rise as big as they were afraid of: unlike previous proposals Almost double In the case of capital gains tax rates, House Democrats raises the maximum capital gains tax rate to tax profits from assets such as stocks and bonds to just 25%.It’s sitting now About 20% For the most earning Americans.

According to liberals, much of the wealthy Americans’ income comes from assets like capital gains, which are taxed at a lower tax rate than wages, not salaries. Focusing on budget and progressive priorities..

However, the increase in capital gains seems to be targeting a wider group, avoiding income of less than $ 400,000, in line with Biden’s tax pledge.The white house had Said before Capital gains increases only apply to individuals who earn more than $ 1 million a year.

The latest plan also imposes a 3% “additional tax” on people with adjusted total income of more than $ 5 million. Senator Elizabeth Warren has long demanded taxes on the wealthiest people in the United States. Her super millionaire tax law We impose a 2% tax on households with net worth of $ 50 million to $ 1 billion. Households with net worth over $ 1 billion are subject to a 3% tax. However, it is unclear how that “additional tax” matches, or does not match, Warren’s and other progressive full wealth tax proposals.

On the corporate side, the Democratic Party is set to propose a tax rate of 26.5%. This is an increase from the current 21% level, which was fixed under the Republican tax law of 2017. However, it is a smaller increase than Biden proposed and only applies to companies that earn more than $ 5 million. For other companies with “income” less than $ 400,000, that percentage drops to 18%. Others will see their tax rates unchanged.

The plan includes Biden’s funding of $ 80 billion over a decade to strengthen the enforcement of the IRS for the highest-income Americans.Treasury researchers earlier this week found The top 1% of income earners avoided about $ 163 billion in taxes each year.

Agency Commissioner Charles Retig, Said The tax gap (taxes that are unpaid but not collected) can actually exceed $ 1 trillion, well above government taxes. Official quote Of $ 441 billion.

Biden’s funding will strengthen enforcement on the wealthiest people. Overall, the number of agents dedicated to implementing advanced tax evasion has declined by 35% over the last decade, according to the Treasury. The IRS budget has dropped by 20%, Audit failed It increased by 42% from 2010 to 2017.

according to White House fact sheetFrom 2011 to 2018, the audit rate for people who earn more than $ 1 million a year has dropped by 80%.

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