House Democrats Propose New Tax Hikes to Pay for Their $3.5 Trillion Bill

Automatic TRANSCRIPT

In congress are moving ahead with president biden spending plan. It includes up to three point. Five trillion dollars for new programs mostly aimed at helping lower income americans. They plan to finish work today on a long list of new tax increases to make that spending possible. Npr congressional correspondent kelsey. Snell has been looking into this story. Good morning kelsey. good morning. What are democrats proposing re taxes. So democrats say they can raise at least two trillion dollars in as much as three trillion dollars with this plan. You know the big ticket items are increases to the top corporate and individual rates. You know basically they're trying to roll back. The tax cuts republicans passed under president trump. In two thousand seventeen okay. Let's parse those two out. What would this mean for taxes on individuals on the individual side. Democrats promised voters that they'd undo taxes for the wealthy and this is really their moment to do that. They want to return the top tax rate to thirty nine point six for individuals. Earning over four hundred thousand dollars. They also want to increase the rate high income. People pay for selling things like stocks and other assets. It's called the capital gains rate. And they wanna make the top rate for that twenty five percent which is a pretty big hike and what would it mean for businesses. Their plan would increase the top corporate tax rate from twenty one percent to twenty six and a half percent. Now that is not a full reversal of the tax cuts. Republicans passed and it's lower than what biden proposed they also plan to include changes to the rules for pass through businesses. Now sometimes that includes doctors and lawyers but it basically means that someone reports business income on their individual taxes and they wanna make it harder for companies to avoid the new higher taxes. How are republicans responding to these proposals while republicans say that the bill will actually have some pretty harmful effects on the economy. Mostly by making the us an unattractive place to run a company and they say it would penalize companies. That would normally use the money. They'd have to pay in new taxes to reinvest in their

Coming up next