Democrats disagree about how big their spending plan should be and how much of it to pay for. In addition, the entire list of tax increases under consideration would likely raise more money than it needs, especially after Senator Joe Manchin (DW.Va.) stressed Thursday that he was spending near $ 3.5 trillion, which allowed the Democrats budget.
The House Ways and Means Committee is developing its own list of tax increases that Chairman Richard Neal (D-Mass) has kept under wraps.
Many of the proposals Wyden is considering are not surprising: increase the corporate tax rate; Raising the upper marginal income tax rate back to 39.6 percent, where it was before the Republicans lowered it; Increase in capital gains tax to the highest income tax rate for high earners.
Some would expand tax hikes Democrats tacitly agreed to as part of their coronavirus stimulus package earlier this year, such as a proposal to extend a temporary rule that makes it harder for non-incorporated business owners to use and thereby incur losses to offset other types of income reduce their tax bills. Another would expand business deduction restrictions for employees who earn more than $ 1 million.
Others are new, including a proposal to impose an excise tax on corporations if CEO salaries exceed average worker wages by an unspecified ratio, and another proposal to impose a 20 cents tax on the sale of “virgin” plastic, which is used for the production of individual pieces. Use plastics.
Wyden, who meets weekly with the Finance Committee Democrats, also wants his colleagues to consider imposing an excise tax on companies that buy back large amounts of their stock and taxing billionaires on unrealized stock gains.
He proposes taxes to combat climate change, such as a tax on the carbon dioxide content of fossil fuels, and requires people to withdraw money from their retirement accounts when their balance exceeds certain thresholds.