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Democrats add $60 Billion in Tax Increase Into COVID-19 Relief Bill
Democratic members of Congress saw a head start on their agenda of tax increase, and they have done so by adding in three tax hikes in President Joe Biden’s COVID-19 relief plan.
The new tax hikes included in the recently approved plan amount to $60 billion overall. They’re mainly targeted towards big corporations.
According to Politico, one of these policies removes deductions for publicly traded companies that spend more than $1 million in employee payments. Another looks into how multinational corporations calculate their taxes. The third focuses on how unincorporated business owners account for the money they lose.
The report added that these tax hikes are in line with the Democratic agenda of increasing taxes for rich people. However, these provisions ended up being unnoticed because of how they are relatively obscure. Politico noted that these provisions will likely not be too newsworthy.
Tax Increase Provisions Added Late
These proposals were added into the plan late, and lobbyists did not have enough time to gather an opposition.
Many expected Democratic lawmakers to wait until later in Biden’s term to push for tax hikes. However, it seems they couldn’t resist adding them when the opportunity opened itself to them. These Democratic lawmakers included these tax hikes to protect the plan from a Republican filibuster when it goes to the Senate.
The news of Congress including a tax increase during a pandemic and economic crisis might be seen by many Americans in the wrong way. However, the Democratic lawmakers who introduced them may argue that it paved the way for adding provisions such as benefits for the unemployed and the waiving of Taxes.
The COVID-19 relief package backed by Biden passed Congress on Wednesday. The president signed it into law on Thursday.
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