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World

16. 09. 2021. 00:00   >>  16:59 0

BUDGET FINANCING

Biden proposes a tax increase for companies and the rich

A key committee of the US House of Representatives has passed bills to increase taxes for companies and the rich to help fund President Joe Biden's $ 3.5 trillion budget plan.

The House of Representatives Committee in charge of budget review, in which Democrat MPs have a majority, approved by a majority vote the parts of the draft budget laws related to taxes.

This includes raising the highest income tax rate from 37 to 39.6 percent and the highest corporate income tax rate from 21 to 26.5 percent.

Under the plan, the capital gains tax rate would increase from 20 to 25 percent for Americans with taxable income above $ 400,000, with a 3 percent supplement on income greater than $ 5 million.

The opinion of the committee is a recommendation to the leaders of the House of Representatives and the Senate, while in the coming weeks they will work on the final versions of the law on taxes and spending.

Democrats, who aim to pass the law without the support of Republican lawmakers, cannot afford to lose more than three votes in the House of Representatives and not a single vote in the Senate.

The tax increase is an expected proposal, given that during the corona crisis, the governments of Donald Trump and Joe Biden approved huge fiscal incentives to help citizens overcome the crisis and encourage economic recovery.

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