US tax increase by a silk thread | Financial

The increase may need to be toned down a bit to get the plan through Congress. In any case, it seems likely that months of negotiations will be needed to get the proposals through.

Democratic Senator Chris Van Hollen from Maryland has said that many different options are currently being considered. And Representative Richard Neal, of the committee charged with drafting tax legislation, said he is inundated with ideas from colleagues on exactly how the new tax plans should take shape.

Damage economy

What’s at stake is that some Democrats are concerned that higher taxes could hurt the economic recovery from the corona crisis.

Biden’s tax policy is clearly different from that of his predecessor Donald Trump. The US government recently came up with major investment plans for the years to come.

The cost of that will have to be met in part by an increase in corporate tax from 21 to 28 percent, largely reversing an earlier cut under Trump.

Tight fight

In addition, a minimum tax should be imposed on both foreign and domestic profits that companies report to shareholders.

Because of the 50-50 vote ratio in the Senate, Biden cannot afford to have any of the Democratic senators vote against the plan. Republicans have already spoken out against the proposals.

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