US House Democrats have staged a plan to fund trillions of dollars by raising taxes on the rich and on profitable corporations.
US media reported on Monday that the House Ways and Means Committee was as always focused on raising income tax to pay for the party’s $3.5 trillion social policy bill.
Media covering the economic issue complained that US President Joe Biden’s 2020 campaign promise to lessen the widening wealth gap in US society was being diluted by his Democratic allies in the House Ways and Means Committee who scaled back some of the most important elements of the Biden administration’s pitch released in May despite the outrage of Democratic leaders.
A proposal that the Committee will begin voting on Tuesday, prepared by Democratic members and staff of the panel, had deleted some of the most ambitious elements of the Biden Administration's plan which was carefully designed to close all loopholes exploited by high-flying captains of the US industry.
The Committee’s proposal to pay for trillions in social spending leaves wealth gains and inheritances largely alone. It focuses instead on a more traditional target: income, according to the NYT.
The Committee's proposal omitted the strategies that had been included by the Biden administration to take money from the richest of the rich.
The most glaring omission in the House package is that it does not tax capital gains at death – i.e. people like Jeff Bezos and Elon Musk will continue to go through life and death without paying our main tax – individual income – on much of their income. Senate needs to fix.— Chuck Marr (@ChuckCBPP) September 13, 2021
The super-rich earn little money from actual paychecks ( Bezos’s salary from Amazon was $81,840 in 2020).
Their vast fortunes in stocks, bonds, real estate and other assets grow each year largely untaxed.
Meanwhile, top Democrats are still pushing for stringent measures to reduce to widening inequality in the US.
"For years, we’ve shortchanged investments in American families because the wealthy and well-connected aren't paying what they owe," said Senator Ron Wyden (D-Oregon), chair of the Senate Finance Committee, adding, "My legislation will level the playing field and increase tax revenue for critical programs like child care and paid leave."
Also, Senator Elizabeth Warren (D-Massachusetts) said she agreed with Wyden on better taxing super-rich individuals and corporations.
I agree with Chairman @RonWyden: we need to pass a bill that ensures that billionaires and corporations are finally paying their fair share. A wealth tax and my Real Corporate Profits Tax are two ways to get that done. https://t.co/xTtTQ8PGx2— Elizabeth Warren (@SenWarren) September 14, 2021
In the meantime, tens of millions of Americans are at the risk of becoming homeless in large US cities due to America’s widening inequality.
The dire situation in 100 real estate markets across the US is mainly the result of rising rent prices in cities with high housing costs, forcing more and more Americans to live on the streets.