To finance the fight against climate change, the Democratic Party wants to tax the 700 most affluent in the US.

To%20finance%20the%20fight%20against%20climate%20change%2C%20the%20Democratic%20Party%20wants%20to%20tax%20the%20700%20most%20affluent%20in%20the%20US.
source: nytimes.com

The plan proposes a tax on those with assets greater than 1,000 million dollars or annual income greater than 100 million, to finance the social programs promoted by Joe Biden.

Democrats in the United States Senate proposed to impose a tax on the rich, an idea without precedent in the country that seeks to facilitate a consensus among the party's factions and obtain the approval of President Joe Biden's ambitious reform plan.

To finance social welfare, the idea is to collect a tax on those with assets more significant than $ 1 billion or income higher than $ 100 million a year. Climate change plans that Biden hopes to have approved. Before heading out on a series of overseas encounters this week. This is equivalent to about 700 people.

If the bill goes into effect, the assets of billionaires, such as stocks, will be assessed every year and taxed if their value increases. If they are reduced, taxpayers can deduct up to three years under the proposal. This would be a change from current US law, in which taxes on the value of shares usually are only paid if they are sold.

Taxes on the rich, with a 15% tax on large corporations, could appease Arizona lawmaker Kyrsten Sinema, who has yet to accept the idea of repealing the tax exemptions approved for the rich and big corporations under the presidency Refused to Of Donald Trump.

Biden met with sinema and another dissident Democrat, Senator Joe Manchin of West Virginia, at the White House on Tuesday night.

 No senator wants to come out saying, 'Yeah, I think it's wonderful that billionaires don't pay taxes year after year,' " said Senator Ron Wyden (Oregon), Democratic Senator Ron Wyden, chairman of the House Finance Committee.

Democrats hope to approve spending 1.75 trillion dollars for child care, health care, and combating climate change. However, the original plan was $ 3.5 trillion.

The new taxes on the wealthy and large corporations could allow Biden to fulfill his promise that the more affluent layers of society will "pay their fair share." The other promises not to tax those who earn less than $ 400,000. Per year as individuals or 450,000 for couples. Biden insists the project should be fully funded without high levels of public debt.

While the idea of ​​the new taxes could convince Manchin and Sinema - whose votes are indispensable since the Senate is split 50-50 between the two parties - it has been criticized by other Democrats.

Democratic Rep. Richard Neal of Massachusetts, chairman of the House Tax and Resources Committee, warned that the new billionaire tax could be more difficult to collect than simply increasing the current tax rate.