At last night’s Met Gala, congresswoman Alexandria Ocasio-Cortez wore a gown that said “Tax the rich.” That is exactly what the Democrats intend to do.
The Democrats rolled out plans to increase the corporate tax rate from 21% to 26% on Monday. It also includes a 3% surtax on any individuals earning more than $5 million and would increase capital gains taxes to 28.8%.
The President’s party has been looking under the bed for ways to pay for the $3.5 trillion infrastructure bill and they keep coming back around to tax hikes. Their plan would also raise the maximum tax bracket back to 39.6%. The maximum percentage is currently 37%, put in place by President Trump’s 2017 tax rules. The plan does not repeal SALT, which is the cap on state and local tax deductions at $10,000.
Tax hikes got sidelined earlier this year when Democrats could not be sure that they had the votes to pass it. They are still not. Democratic Senator Joe Manchin has said that he does not want such high increases and Republicans will fight against this with all of their might.