President Joe Biden’s push to ramp up taxes on the wealthy is getting diluted by his Democratic allies in Congress, undermining his chances of fully delivering on his 2020 campaign pledge to curb America’s widening inequality.A blueprint that the House Ways and Means Committee will begin voting on Tuesday, prepared by Democratic members and staff of the panel, scaled back some of the most ambitious elements of the Biden administration’s pitch released in May.The changes reflect the political reality of a Senate that requires moderate Democrats to vote en masse for the final package, given the razor thin margins of the party’s control of the chamber. The cost: support from progressives needed to fire up the electoral base in 2022, and a more concerted effort to address inequality that evidence shows is damaging the U.S. economy.Biden’s move to tax rich families on inherited assets at the time of transfer -- ending the so-called step-up in basis measure -- is absent from the House plan unveiled Monday. His top capital gains tax rate of 39.6% gets weakened to 25%. There is a 3% surtax on incomes exceeding $5 million, but the principle of bringing levies on investments more into line with wage-earners’ incomes is eroded.While Senate Finance Committee Chairman Ron Wyden hinted at addressing step-up in basis, such a gesture faces opposition from moderate Democrats in the upper chamber. Farm-state lawmakers have voiced particular concern about doing away with tax-free transfers of inherited assets, even though family farms were specifically marked out as an exception by Biden.https://www.bloomberg.com/news/articles/2021-09-14/biden-s-allies-shy-from-taxing-rich-eroding-inequality-promise
Remaining ‘Hole’“The biggest area where it falls short compared to Biden is changing the capital gains tax base, which is key to making sure billionaires pay taxes on those gains and making sure those gains don’t go un-taxed entirely,” said Seth Hanlon, who served as a tax policy adviser in the Obama administration. “There is still this hole in the tax code that allows wealthy people to avoid taxes on their gains entirely.”Hanlon, now a senior fellow at the Center for American Progress, said the House plan, which includes increases in a range of levies on companies, does mark a “very large step forward.”Inequality is also addressed through strengthened programs to aid middle-class and lower-income households, all part of a giant bill currently valued at $3.5 trillion over 10 years. Congressional panels are now crafting the legislative text for the various components, which include expanded child tax credits and enlarged outlays on health care and education.Biden’s Build Back Better plan, dating to the presidential campaign, expressly promised to reverse the Republican tax cuts from 2017 and ensure the wealthiest Americans paid their fair share.One White House official said that the administration expected many twists and turns in the coming weeks as congressional Democrats debate the best way to raise revenue, and pointed out that the Senate Finance Committee has its own own proposal coming.The official declined to specify what alternatives it would back to address raising taxes on the ultra-rich if the administration’s proposals on step-up in basis and a 39.6% top capital gains rate don’t make it through the lawmakers’ discussions.The criteria the administration is using to evaluate lawmakers’ ideas are whether they reverse what Democrats regard as the worst parts of the 2017 tax overhaul, and whether they force larger companies and the highest-income Americans to pay more.
That marker is something short of what progressives want. Even Biden’s proposals excluded the kind of annual wealth tax that Senators Elizabeth Warren and Bernie Sanders endorsed on anyone with more than $50 million in assets.“Democrats still have not gotten religion on the tax fairness issue,” said Frank Clemente, executive director of the left-leaning group Americans for Tax Fairness. “If we can’t pass a tax bill that strikes a modest blow at the accumulation of dynastic wealth, what does it say about the Democratic Party and whose side are they on?”Raising levies on powerful, well-connected constituents has always been a tough battle -- the last comprehensive set of tax increases, in 1993, was enacted with a vice presidential tie-breaking vote in the Senate. Lawmakers this time are facing an intense lobbying effort from a raft of major business groups and newly formed coalitions to weaken proposal.Even though Biden’s plan to eliminate step-up in basis included exemptions, opposition from groups including the National Corn Growers Association has been vocal. The administration’s package exempted from taxation any family business or farm passed down to heirs and would tax the increase in the value of the business or property only when it is sold, or stops being run by the family. Biden’s plan also exempts the first $2.5 million in gains from family farms from taxation.One outside coalition, run by former Heidi Heitkamp, a former Democrat senator from North Dakota, argues that the proposed tax changes would still hit ordinary Americans like farmers or those who run smaller family businesses. She said the Biden proposal has generated deep skepticism among farm owners and rural business owners who fear the provision would erode land values or that the exemptions could later be weakened.
“When you think about this in the long run, is the revenue that would be raised commensurate with the political liability you’re taking on?” Heitkamp said in an interview. “To think there is no political liability, that may be true in downtown Queens, but it’s not true in states like North Dakota, South Dakota, Montana, in rural districts, in swing districts.”‘Smoke Screen’Senator Jon Tester of Montana, a Democratic moderate, said through a spokesman that none of the inheritance-transfer tax proposals he has been offered so far are acceptable and he will continue to oppose them on behalf of family farms, ranches and small businesses.Agriculture Secretary Tom Vilsack, however, wrote in a recent opinion piece that lobbyists were using “American farmers as a smoke screen to keep a system that allows the rich to pass on their wealth tax-free.”“American billionaires and their heirs are getting away with amassing huge fortunes without paying a dime on these dollars in income taxes,” said Democratic Senator Chris Van Hollen of Maryland on Monday. “This loophole is a prime example of how our tax code favors accumulated wealth over work,” he said, pledging to keep working with Senate colleagues on the step-up in basis front.
The tax increases pitched by the House committee would raise revenue by $2.1 trillion over 10 years, according to Congress’s official scorekeeper. If those increases get further diluted, the spending side of the so-called reconciliation bill -- which bypasses a filibuster, allowing for it to be approved without Republican support -- may also have to be trimmed. Senator Joe Manchin, a moderate Democrat from West Virginia, has already warned he won’t vote for a $3.5 trillion bill.“It’s still a very significant change -- just how significant depends on the political bargaining,” Jason Furman, a senior economic adviser to former President Barack Obama, said of the tax provisions under consideration. Furman, now a professor of economic policy at Harvard University, predicted in the end “something very large will come together” on the tax-fairness front that would amount to “the most significant effort to reshape inequality in generations.”
Dems don't walk in lockstep like their far right cultist counterparts.
>>928771Because half of them are owned by the same people that own all the Republicans.
>>928796>>928771There all owned by the same people. The real trick is convincing people theyre different parties with “your interests” in mind.
>>928743if they don't tax the absolute fuck out of the rich they'll lose 2024 horribly
Don't care as long as we fix the last parties deficit
>>928811its either drastically reduce pentagon spending or tax the fuck out of the top earners. the latter is more likely, but not likely
>>928803>>928743Wealth inequality is caused because workers are forced to compete with international slave labor and can never build wealth security. There are no union jobs
>>928880we should increase taxes on any business that manufactures outside the US. not tariffs, just a blanket +x% on all a business's operations inside and outside the US, if part of their manufacture process is outside the US, outside of something like semiconductors. we also need more laws to protect and encourage unions
>>928876>reduce pentagon spendingHow do you reduce spending on a 2.4 trillion dollar "accounting error" over twenty years.>tax the fuck out of the top earnersFully support this, but how are you going to do that? Musk bought a private jet as a business expense through SpaceX, and he lives in a penthouse that is a tax write off because it's owned by Tesla. Zuckerberg has multiple houses, all owned by his company, and all of his living expenses are paid by it. He even has his own charity to gift tax free money to himself. Let's not even get started on all the bullshit Amazon does to circumvent everything. If your only solution to "taxing the rich" is raising income tax brackets and capital gains, then all you're doing is shaking down the middle class. Also, lots of small businesses use S-corps and C-corps to their advantage, but how do you tax the rich without fucking the small businesses over? No one can give real solutions, only rhetoric.
>>928884How to get a business to leave the country, Step One.You're not the sole economy of the world anymore, there's plenty of lovely tax havens for people to jump ship to, lots of them eager to suck as much dick as they need for all that sweet moolah.
>>928901>How to get a business to leave the country, Step One.goodbut they should be blacklisted and never permitted to own businesses in the US again. you leave the country over taxes after they have been their lowest for over 25 years.... then you dont deserve american business. periodlet the FREE MARKET fill the vacuum. There is always someone else willing to run the exact same business but without throwing a shitfit politically perpetually to lower taxes below... what is it now? a whole 30% and with enough loopholes in the law to literally march an army thru. fuck businesses that think they can leech off the United States forever. the gravy train is over, there are no other countries with the level of infrastructure we have and potential customers we have that also offers such low taxes.
>>928743No refunds.At least no one voted for this.
>>928803>if they don't tax the absolute fuck out of the rich they'll lose 2024 horriblyRaising tax rates is also a 100% guaranteed way to lose 2024 horribly>>928902>>928911>crashing the economy in one easy stepAlso>not wanting government to steal from you is bootlicking
>>928902>hey dude you know how communists chase away business then the gov has to tax the middle class, then the economy dies and then everyone dies? yes lets do this but this time permanently!!there is a reason why i think killing communists is not a crime.
>>928893Increase cap gains taxes, close the IRA loopholes, close personal use loopholes, wealth tax, close trust loopholes, remove the SS cap, close the fund manager loopholes, financial transaction taxes.... There are lots of solutions out there anon, you just want to pretend like they don't exist.
>>928901> Businesses don't exist in high tax areasFuck off with that bootlicking bullshit
>>929044>Hey dude you know how I make up dumb shit with no factual basis?>Oh, and "muh Communism"Imagine being this retarded
>>928743>>928744>>928745>>928747>>928748tl;dr it's all Joe Manchin's fault that we can't have nice things.
>>929049>Increase cap gains taxes, close the IRA loopholesSince investments, capital gains, and IRAs are how a lot of people who don't have cushy pensions fund their retirements, how will you prevent this from harming the majority of the middle-class who uses these? Don't forget that for every Jeff Bezos and Elon Musk, there's thousands of people who are just working and saving like responsible adults.And we also have to be careful in what we call "wealthy". Bezos' net worth clocks in at around $200 billion. But how much of that is actual liquid assets (money) and how much of it is stock that if he started liquidating in large volumes would almost certainly crash in value?
>>928745>dynastic wealthI don't know why people still use this term. Most wealth is frittered away and one or two generations. Pissed away on drugs, alcohol, hookers, and bad decisions. I've seen it happen first hand.
>>928743I saw a report yesterday that even if govt took all the wealth from all the billionaires it wouldn't cover the $5 trillion they are trying to push through now.. They are worth $4.4 trillion. If the $5 trillion were to be paid equally by every worker in the US it would be $30 thousand each.. Inflation will run rampant for 10 years cutting your spending power by 2/3.. 80% of the money will be wasted and siphoned off by corrupt politicians to their buddies.. After 10 years the roads will still be full of potholes and repairs needed everywhere..
>>929149There are huge differences in how the average person invests and what the wealthy do. There's definitely a way to do this without fucking over the middle class. https://www.propublica.org/article/lord-of-the-roths-how-tech-mogul-peter-thiel-turned-a-retirement-account-for-the-middle-class-into-a-5-billion-dollar-tax-free-piggy-bank
>>929087Also Kyrstin Sinema
>>929184You do know that 5 trillion is over TEN years right?
>>928964Stockholm syndrome cuck
>>929052Lol learn history.
>>929149> I didn't actually read the post I responded to, not do understand tax laws, and therefore we should do nothing. All is fine with the uber wealthy paying near zero tax while the middle class ponies up 30-50% of their earnings in multiple forms of taxes> t. Shill
>>928743>biden and his democrat friends are rich>idiots expect they will tax the rich>instead what they will do is just more migration to surpress wages and tax anyone that is below them basically middle and barely upper classcome on guys be real for a second
>n..no you dont understand biden will totally tax himself and his genius painter artist son as well as all their rich friends...lmao some people
>>928901>a business will forfeit 100% of revenue earned within the US in order to avoid a % of that revenue being taken as taxyou're a complete fucking retard
>n-no you can't raise taxes!!!My response: XD!
>>928964>rich people have to get all the money or else they'll intentionall crash the marketsdo it, faggots. Do it, and prove to all of america how unamerican big businesses really are. Nobody trusts big corporations, but throwing that kind of shitfit to get their way will only burn bridges and guarantee that blacklisting. do it. watch as legacy companies go crying to every other nation on earth for their precious tax cuts, only to find nobody was ever so tolerant of their shit as the good ol USofA.
>>929044OH NO, HE SAID COMMUNISM! THAT MEANS HE WON!fuck you, you sad cuck.