White House framework includes tax increases, excludes billionaires tax

The social spending framework that the White House unveiled Thursday includes tax increases focused on high-income homes and corporations, but omits a proposal to annually tax the investment earnings of billionaires that had received considerable attention this week.

Tax proposals in the framework that target corporations include a minimum 15 percent corporate tax, a 1 percent surcharge on share buybacks, and international tax changes that are in line with an agreement reached by more than 100 countries earlier. of this month.

To raise taxes on high-income individuals, the framework calls for creating a surtax on the income of billionaires and billionaires, applying an investment income tax created by ObamaCare to certain business income, and extending a cap on business losses. excessive.

The framework would also provide the IRS with more money for tax application.

However, the framework does not include some of the other tax ideas that Democrats had considered but were divided.

One proposal that was left out was a Senate Finance Committee plan. Ron WydenRonald (Ron) Lee Wyden On Money: Will Joe Manchin ‘s Billionaire Tax Survive? Patience wears out as Democrats miss deadlines Crucial talks on Biden’s agenda enter the home stretch MORE (D-Ore.) To annually tax the unrealized capital gains of billionaires, which had raised concerns from the Sen. Joe manchinJoe ManchinBiden to Meet House Democrats Ahead of Europe Trip: Report 21 House Democrats Call for IRS Bank Reporting Proposal Removed from Spending Bill Democrats Try to Back Manchin on Removal of the paid family leave proposal PLUS (DW.Va.) and several House Democrats.

It also does not include the tax rate increases that the Sen. opposes. Kyrsten CinemaKyrsten Sinema21 House Democrats Call For IRS Banking Reporting Proposal To Be Removed From Overnight Health Care Spending Bill – Brought To By Altria – Vulnerable House Democrats Push For On The Drug Pricing Plan Money – Will Joe Manchin ‘s Billionaire Tax Survive? PLUS (D-Ariz.).

Additionally, the framework does not mention a proposal to increase the amount of information the IRS receives about bank accounts, which some Democrats had criticized and has also come under significant opposition from Republicans and banking groups. An administration official said that as of now, it appears that solid funding will be included for the IRS application, but that the bank’s proposal is off the table.

President Biden on Thursday offered the new framework to Democratic lawmakers ahead of his planned trip to Europe for a climate conference, hoping to unify progressive and more moderate lawmakers who have been divided over the party’s plans for social spending. and a much larger climate package.

The White House said spending on the framework would be fully offset. In total, the administration estimates that its proposed compensation could raise up to about $ 2 trillion, including tax increases and the repeal of a rule related to prescription drugs.

The framework does not mention the cap on the state and local tax deduction (SALT), which several Democrats from high-tax states want to have repealed. Revoking or increasing the limit would lose federal revenue.

However, Democratic lawmakers indicated that changes to the SALT deduction limit would still be included in a final piece of legislation.

“SALT will be in the final game,” Chairman of the House Ways and Means Committee Richard NealRichard Edmund NealTrump’s Lawyers Ask Judge To Stop IRS From Delivering Your Tax Returns To Congressional Panel (D-Mass.) He told reporters on Thursday.

Rep. Tom Suozzi (DN.Y.), one of the leading advocates for the repeal of the cap, tweeted that he is “sure it will be part of the final deal.”



Reference-thehill.com

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