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Democratic Party proposes to increase taxes on corporations and the wealthy

Democratic deputies proposed tax hikes for the wealthiest and companies earning more than $5 million per year.

According to the “ABC” website, a group of Democratic representatives of the U.S. House of Representatives proposed an increase in taxes for the wealthiest and companies earning more than 5 million dollars per year.

1. Purpose of the increase

According to Democratic jurists, the proposed increase is expected to raise $2.9 billion over 10 years to pay for President Joe Biden’s $3.5 billion social spending program.

2. Political interests

Democrat Richard Neal, chairman of the lower house’s Ways and Means Committee, comments that the proposal would serve to abolish the tax reform established by the Republican administration led by Donald Trump in 2017.

3. Expected percentages

The proposal in question seeks to replace the fixed rate of 21% that all companies pay for a gradual rate, which will scale depending on the income generated by such individuals and legal entities. In this regard, those companies earning less than US$400,000.00 per year will have to pay 18%, those generating income over US$5 million will pay 21%, and those exceeding US$5 million will pay 26.5%.

Source: Abc.com 14/09/21

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