(HorizonPost.com) – When creating a personal spending plan for your family, you have to make sure you have enough income to cover expenses. That’s not only true for every individual, but businesses and the government as well. So, with a $3.5-trillion budget reconciliation primed to pass Congress, it’s reasonable to wonder how the US government plans to balance the additional spending with revenues.
On September 13, the House Ways and Means Committee, responsible for writing taxation bills for the US House of Representatives, presented legislation that holds some of the answers to how Democrats plan to pay for the anticipated budget spending. Part of the revenue will come from a federal corporate tax rate increase from 21% to 26.5% for businesses with over $5 million income.
— The Hill (@thehill) September 13, 2021
Legislators on the Left agree with increasing taxes on the wealthy as the best way to pay for the social programs inside the budget reconciliation. Still, Republicans are unlikely to be happy about the change. That’s because they worked hard in 2017 to decrease the corporate tax rate from 35% in hopes of helping US companies thrive.
Democrats don’t necessarily need bipartisan support to raise the taxes on businesses or increase the capital gains tax to 25% this time. If they can work out their differences by the time the budget comes up for a vote, sweeping tax increases for some may become law. However, moderates continue to push back against the reconciliation bill, which could make it difficult for the party to move forward without Republican support.
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