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Senate Democrats Want Taxes on Stock Buybacks and CEO Pay
In order to pay for plans for more social spending, Senate Democrats are proposing even more tax measures. This includes taxes on stock buybacks, carbon emissions, and executive pay.
RELATED: Democrats’ $3.5T Budget Plan Includes Expanded Medicare
Senate Democrats Want To Introduce More Taxes
Democrats floated one idea to charge excise taxes on stock buybacks. This means treating buybacks as taxable dividends. This is according to sources familiar with the Senate Finance Committee.
Democrats also proposed excise taxes for executive salaries that exceed a worker’s average pay by a predetermined ratio.
In addition, Senate Democrats also want to adjust how to tax capital gains. Instead of taxing gains during the period of sale, new rules will collect taxes upon acquisition of capital gains.
Finally, they want new limits for tax advantaged retirement accounts. These new proposals target the increase in the number of accounts that hide millions in wealth. This can also potentially generate hundreds of billions of dollars from the top 600 richest Americans.
How To Pay for Biden’s $3.5 Trillion Social Plans
The proposed tax measures give Democrats more options on how to pay for President Joe Biden’s $3.5 trillion social spending proposals. Biden wants to increase investments in child care, education and other social programs.
Biden and Democratic lawmakers repeatedly assured everybody else they won’t raise taxes for Americans earning less than $400,000 annually.
Other proposals to pay for the programs include a revisit on the corporate tax rate. Former President Donald Trump reduced the tiered tax rates between 15% to 39% to a flat 21%.
Now, Biden wants to change the tax rates again. This entails raising taxes on overseas income as well as increasing top tier rates to 39.6% as well as the capital gains rate.
Manchin Wants Senate Democrats To Pause The Proposals
However, Democrats couldn’t even get their acts together. Senator Joe Manchin (D-WV) criticized the $3.5 trillion budget of the proposed plan. He also suggested that Democrats pause on the deliberations, given current issues on inflation and debt.
Meanwhile, members of the House Ways and Means Committee are preparing their own version of tax measures to pay for the social program. For the measure to proceed, the House version will need to reconcile with the Senate version.
Corporate Buybacks
Senate Democrats say that taxes collected on corporate buybacks and dividends would raise $70 billion to $80 billion a year. An earlier paper published by law professors Daniel Hemel and Gregg Polsky agrees with the potential gains.
The proposed new taxes present “a potentially attractive add-on to future budget bills that strive for revenue neutrality or deficit reduction.”
Another measure getting consideration by Senate Democrats is increasing exemptions on capital gains taxes on appreciated assets. These are the assets held by wealthy individuals until death.
The proposal increases the exemption from $1 million per person to $5 million, as well as from $2 million to $10 million per couple.
Other Exemptions
The Senate Finance proposal also proposes to change exemptions for their property from taxes. From the $10 million exemption, the Senate Democrats now want to raise the amount to $25 million.
Biden’s proposal also wants to allow family-owned-and-operated small businesses to indefinitely defer paying the capital gains tax. They can pay the capital gains tax when they sell the business or they relinquish control.
At the same time, Senate Democrats want the Internal Revenue Service to tax carried interest for fund managers at regular tax rates. The IRS can crack down on trusts used by the wealthy to avoid gift and estate taxes.
Watch the CNBC Television video reporting that Senate Democrats look at possible tax changes to pay for spending package:
Loading ...Do you agree with the tax proposals made by Senate Democrats to pay for their social programs? In addition, do you also support the increased spending on social programs?
Let us know what you think. Share your thoughts in the comments section below.
13 Comments
I disagree on both no increase in tax and no spending on their social programs.
This is all because they want to finance all the illegals that came into this country and over 40,000 Afghan refugees ….. all these people are going to need welfare checks healthcare education costs Dental we all are in serious serious trouble …..you can only print so much money and then the Fed is going to raise interest rates imagine going to buy a house and your interest rate is 10–12% think about it
I disagree with everything that they want to
I’m on limited income I can’t afford any more taxes. We don’t need anymore social programs and raise taxes anywhere
I disagree with everything that they are trying to do
I want to see THEIR tax bracket! I want access to their bank accounts. They want access to ours. They stated as much in the American Families Plan. Any account over $600, banks have to disclose all of your personal information and of all of your account transactions to the IRS!
I do not support anything they are proposing we do not need additional taxes, we need less spending and sending money to other nations.. USA FIRST.. Additionally the right needs to propose a 15 percent flat tax for all income earned from everyone, no more tax filings..just a flat tax of 15% and the treasury coffers would have a surplus..
The one and only thing that Democrats know how to do is spend our money! More taxes for the rich mean more taxes for all of us. The last time i looked a $400,000 annual income a year after taxes doesnt make anyone rich in this day and age. We have a bunch of non caring foolish idiots running this country!
NO crossing of the U.S. border until vetted & cleared. Children must be protected from any & all types that could harm &/or take advantage of them. Anyone getting any type of temporary Federal, State or Local City assistance in the U.S. must first be a legal U.S. Citizen. Aid is only temporary (90 days). They MUST agree to and then find a job from list of jobs provided by relief agency. NO chain migration. It is about time that ALL foreign governments be fully responsible and accountable for their own citizens. U.S. should withhold any financial aid unless there is a clear & clean audit trail of what and whom the money if being used for to show growth & prosperity for each and ALL individuals especially women & children and not to forget men.
Welcome to the NWO America to where if you have worked your entire live to build a company out of nothing and succeeded you now will have a large percentage of that taken away and given to welfare leeches invading this country! How long are we going to stand for all of this bullshit until we rise up as patriotic citizens and stop it?????
Soon, it will be too tax expensive to even work to pay taxes. We will all be on welfare. What will the politicians do then?
Clearly social programs are ineffective. Waste of money. Why do we continue to try to help those that don’t want to help themselves? Now they want help to stay exactly where they are. No. Thank you.
Why are all the DEMOCRAPS rich? Gates, Zuckerberg See How Much Money Warren Buffett, Dana White, and 35 Other CEOs poured into the Election. Try as they might there is a reason very wealthy Dems stay in the DemOcrap party……The rich never feel the tax increase because their powerful lawyers ALWAYS find ways to hide their money!!!