Democrats are looking forward to increasing tax collection using three major ways to fund their social spending bill. These ways include minimum corporate tax, narrowing down Medicare tax loopholes, and monitoring people’s bank accounts.
Biden robbing big businesses of their hard-earned money
House Speaker Nancy Pelosi declared a self-imposed deadline of October 31 for passing Biden’s so-called economic agenda, consisting of the infrastructure bill and the social spending legislation.
Recently, Biden agreed to impose a 15% minimum corporate tax on big businesses, saying it will allow them to pay their “fair share.”
From @Breakingviews: Countries that account for more than 90% of global GDP signed a landmark deal to introduce a 15% minimum corporate tax. But @LiamWardProud says the plan strayed a long way from its original purpose of giving the rules a digital revamp pic.twitter.com/1IVvZhvBbp
— Reuters (@Reuters) October 11, 2021
Jen Psaki, the White House press secretary, said 55 big companies pay lower income taxes compared to wage-earners. Likewise, she said by introducing a new tax of 15% in the form of the global minimum tax, the US has to stop this practice.
In its original form of $3.5 trillion, the social spending bill demanded a corporate tax of at least 28%. However, some other countries did not agree to impose such a huge tax on big corporations.
Despite choking business giants, Biden claims he is a capitalist and expects people to become billionaires by paying their fair share. As Democrats were failing to pass the bill through Congress, reports suggest the negotiated legislation is expected to be around $1.9 trillion.
Psaki further added the time to reward companies for offshoring profits and shifting American jobs overseas is over.
The Biden administration came under fierce criticism when they supported the global minimum taxation; the GOP is highly unlikely to support the measure once it comes into Congress.
Taxing more people under Medicare: Democrats are strangling rich people
Secondly, Democrats are also looking to revise Medicare taxation policies to promote socialism in the country. Jen Psaki signaled to impose the Medicare tax on hedge fund managers and private equity fund managers who are enjoying tax exemption right now.
There is no reason why a nurse, or a teacher, or a firefighter should be paying more in taxes than a hedge fund manager. That’s just plain wrong.
— Vice President Kamala Harris (@VP) October 22, 2021
Currently, capital gains income is not subjected to pay 1.45 percent payroll tax which other Americans have to pay. As Biden moves forward to impose his agenda on the US, he is likely to tax people this way as well.
One of the important ways in which Democrats are trying to take people’s hard-earned money is to have more regulations on the bank accounts of average Americans. This new move of the government will require banks to report accounts with annual collective transactions totaling to $10,000+ to the IRS.
Psaki labeled tax evaders “tax cheats” and said the top 1% of them can contribute almost $160 billion every year in taxes, which they are currently not doing.
Many Republicans lawmakers criticized this proposal, saying it is an “invasion of privacy” by the government. GOP Senator Dan Sullivan told Fox News even if Democrats collect taxes with all of these methods, they are unlikely to get the revenue needed to fund the social spending bill.
He further criticized Biden, saying Democrats’ claim the bill will cost US $0.00 is a blatant lie.