Democrats to push ‘billionaire income tax’ for climate and social spending plans

Democrats in the US Senate are likely to present a tax plan, called “Billionaire’s Income Tax” later this week. Its aim would be to raise billions of dollars from around 700 billionaires in the United States to fund an expansion of the American social safety net and to fight climate change, Reuters reported on Monday (October 25th).

Democratic Party senators faced opposition from one of their own – Kyrsten Sinema – while trying to push through legislation that would raise corporate tax rates and the highest personal income tax.

Both improvements aim to pay for President Biden’s climate and social spending.

Democrats are trying to pass the legislation before the start of the G20 meeting on Saturday, scheduled for October 30-31.

Depending on the plan’s current direction, U.S. citizens who have amassed $ 1 billion in wealth or those who earn more than $ 100 million per year for three consecutive years may face an annual tax on the growth of assets like stocks. and bonds, Reuters added.

Progressives in the Democratic Party had demanded far more than the currently estimated amount of the social spending plan, which is between $ 1.5 trillion and $ 2 trillion.

However, Sinema and another senator named Joe Manchin, also from the Democratic Party, opposed any other provision that could further increase that amount.

Their votes are needed if the bill has any hope of becoming law.

For now, it is unclear what support the proposal has garnered within the Senate and House of Representatives, CNBC reported.

(With contributions from Reuters and CNBC)

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