Republicans who had vowed to oppose the plan in full force have turned their anger against tax cuts they described as subsidies for wealthy elites and not aid for the poor or middle class. As class-warfare overtones were echoed in a committee session, electric vehicles became a rallying point.
Democrats propose that the top rate of tax be raised to 39.6% for individuals who earn more than $400,000, or $450,000 for couples. Wealthier Americans will also have to pay a 3% surtax if their adjusted income exceeds $5 million per year. The proposal would raise the corporate tax rate to 21% from $21.5% for companies with annual incomes above $5 million.
Biden tweeted Tuesday, “Look, I don’t want to punish anybody’s success. But the wealthy have been getting too much at the expense the middle class for far too long.” “I will pass one of the largest middle class tax cuts ever – paid for by making the top pay their fair part.”
At Monday’s Met Gala in Manhattan, billboards showed the reach of the wealthy. Rep. Alexandria Ocasio-Cortez (D-N.Y.), a prominent House progressive, wore white gown with “Tax the Rich,” in large red letters on the back (designer Aurora James).
As the House Ways and Means Committee examines tax proposals and debates them, they will offer tax help. This is to support and fund Biden’s $3.5 trillion rebuilding plan, which includes spending on child care, education, and combating climate change.
Biden and his aides in Congress are making an opening bid at a difficult moment as they put together the “Build Back better” package, which some consider comparable to the Great Society of 1960s or the New Deal of 1930s Depression.
These proposals include $273 billion in tax cuts for renewable energy and clean electricity. This includes $42 billion for electric cars and $15 billion to support a green workforce and other environmental items. The coronavirus relief legislation that provided $300 per month for children under six and $250 per month for those aged 6-17 would be extended to 2025.
The House Energy and Commerce Committee presented proposals to promote clean electricity, investments into electric vehicles, and other climate provisions. As part of Nancy Pelosi’s goal to approve the massive overall package, the 30-27 vote was voted along party lines.
