On Tuesday, the day before House Democrats’ voluntary deadline to complete the Commission’s work on a vast social policy bill, access to childcare, universal kindergartens and expanded health insurance.
A progressive senator led by Massachusetts Democrat Elizabeth Warren and Vermont-independent Bernie Sanders decides to focus a $ 2.1 trillion tax increase package on income taxes by senior Democrats of the Houseways and Means Commission. Was pushed back strongly. Taxes huge fortunes of big names like Jeff Bezos and Elon Musk.
They vowed to continue their willingness to tax billions of dollars of assets, which grow each year and are not taxed unless sold, for the first time.
“Wealth tax is not something that many politicians sit around and think of as a” great idea. ” That’s what Americans say is that basic equity is needed, “Warren said, proposing a 2% annual tax on the value of household wealth in excess of $ 50 million. It is 6% above $ 100 million.
Mr Sanders also said he didn’t give up.
“The Committee on Methods and Means has come up with their proposal. The Senate Finance Committee is working on their proposal,” said Mr. Sanders, chairman of the Senate Budget Committee. “I think the most important thing at the moment is that in an era of huge income and wealth inequality, there is a tax system that clearly benefits the wealthy and we will start tackling such inequality.” ..
Faced with the subtle politics of the narrowly divided parliament, senior House Democrats focus more on traditional ways of raising income through income taxes and pay more attention to the party’s moderate concerns than its progressive ambitions. I chose to pay.
Even the liberals of the Method and Means Commission defended that approach on Tuesday. Texas Rep. Lloyd Doggett said he was the second-largest Democrat in the panel and a veteran progressive.
“People who aren’t wealthy think they will, and they don’t want to be punished for their success,” he said.
But finding income to pay for social spending is not easy without some way to take advantage of the huge stores of millionaire wealth that are not taxed each year. House Democrats wanted to raise $ 500 billion by reducing the cost of prescription drugs. Part of that was to allow Medicare to negotiate prices, linking acceptable drug prices to prices paid in other countries.
But if the millionaire has strong supporters in Washington, the pharmaceutical lobby is at least as strong.
Two moderate Democrats, Scott Peters of California and Kurt Schrader of Oregon, could oppose Democratic leadership’s aggressive drug pricing plans on Tuesday, significantly reducing government savings Created a more modest version of.