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Billionaire tax materializes as Biden pushes budget transactions | News

Washington — The Democratic Party is working hard to strengthen the profitability of President Joe Biden’s domestic package. Ready to announce new millionaire tax To support his social welfare and payment of climate change plans after the collapse of the previous tax system.

Mr Biden said he hopes a meeting with Congress will come to a general agreement on this week’s package on Monday. It has aggregated at least $ 1.75 trillion and could be higher. “It’s very, very positive to get it done,” Biden said before leaving for the two overseas global summits.

“That’s my hope,” the president said to emphasize the childcare proposals and related infrastructure measures in the package before leaving his home state of Delaware for a trip to New Jersey. “With the grace of God and the goodwill of our neighbors.”

Revenue issues are important as the Democratic Party shrinks its $ 3.5 trillion plan, claiming that all new spending will be paid in full and not piled up on debt. Biden vows that the new tax will only affect wealthy people, who earn more than $ 400,000 a year and, for couples, more than $ 450,000.

The White House had to rethink its tax strategy after one major Democrat. Senator Kyrsten Cinema, D-Arizona.Opposed to her party’s first proposal to raise tax rates for wealthy Americans by canceling Trump-era tax cuts with incomes in excess of $ 400,000. Cinema also opposed a 21 percent increase in the corporate tax rate. In the 50-50 Senate, Biden has no generous votes in his party.

Instead, the White House is emerging new ideas to beat the cinema and others. Taxing billionaire assets The other requires companies to pay a minimum tax of 15%, whether they are profitable or not.They both seem to be gaining traction with another Extremely important Democrat, Senator Joe Manchin, DW.Va.

Democrats of the Senate Finance Committee, led by Senator Ron Wyden of Oregon, are ready to roll out their tax revenue plans in the coming days.

Other revenue tax increases may be included, including plans to strengthen the Internal Revenue Service and pursue tax ridicule.

If Democrats agree to the tax bill, they can assess how much money is available across Biden’s package to expand health care, child care, and other climate change programs.

Democrats wanted Biden to be able to cite great achievements to world leaders later this week. They also face an October 31 deadline to pass the $ 1 trillion bipartisan infrastructure package associated with roads, broadband and other public works projects before the regular Federal Transport Fund expires. ..

“We need to do this,” Biden said in a statement at the New Jersey Transit Center.

Biden flocked with conservative West Virginia Democratic Manchin and Senate leader Chuck Schumer at President Delaware’s home on Sunday while working to resolve the dispute between Centrist and Progressive, which stagnated the bill. rice field. A person who requested anonymity to discuss Manchin’s position told The Associated Press that Senators agreed with the White House’s new approach to tax proposals.

Pick up the populist theme that rang inside Presidential electionBiden is pushing businesses and wealthy people to pay “fair distributions” and end the practice of skipping taxes for some of the wealthiest Americans.

Billionaire’s tax is modeled on the 2019 bill from Weiden to treat assets as income. Senator Elizabeth Warren of D-Mass has proposed another idea for a super-high additional tax of 3%.

Under Weiden’s new plan, millionaire taxes will hurt less than 1,000 of the wealthiest Americans. Those with assets over $ 1 billion, or those with $ 100 million in income for the third consecutive year, will not wait for their shares to be sold, but will tax the profits of their shares and other tradable assets. You have to pay.

Similar billionaire taxes apply to non-tradable assets, including real estate, but are deferred with taxes that are not assessed until the asset is sold.

Overall, there is no tax rate for millionaires, but it is expected to be at least 20 percent capital gains.

Separately, the White House is now at 21% due to Cinema’s opposition to raising the corporate tax rate from 21% to 26.5%, as the Democratic Party has proposed to companies that make more than $ 5 million a year. A plan to maintain the tax rate emerged, but the new 15% corporate minimum. It will try to end the practice of large corporations claiming amortization so much that they pay little or no tax.

After months of start and stop negotiations, Biden’s overall package is now in the spotlight as at least $ 1.75 trillion. However, it can still be quite high, according to a second person who claimed anonymity to discuss personal discussions.

Speaker Nancy Pelosi told CNN on Sunday that it was “less than initially envisioned, but” still bigger than we’ve ever done in meeting the needs of working families in the United States. ” ..

Controversy continues over a wide range of investments, including plans to expand Medicare’s reach with dentistry, vision, and hearing aid benefits for the elderly. Childcare support; and free kindergarten.

D-Calif’s Pelosi said Democrats are still working to maintain preparations for a four-week paid family vacation.

Pelosi said he hoped to reach an agreement by the weekend, paving the way for the House of Representatives to vote on the $ 1 trillion bipartisan infrastructure bill. The Senate approved it during the summer, but the bill stalled during the broader Biden bill.

Associated Press writers Alan Fram, Hope Yen, and Colleen Long contributed to this report.

Copyright 2021 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

Billionaire tax materializes as Biden pushes budget transactions | News

Source link Billionaire tax materializes as Biden pushes budget transactions | News

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