Senate Democrats assembling wish list of tax hikes to fund $3.5T spending bonanza
By Lydia Moynihan
September 3, 2021 7:40pm
Senate Democrats have assembled a laundry list of possible tax hikes to help finance their $3.5 trillion spending bonanza, according to an internal committee document obtained by The Post.
Many Democrats are eager to implement the host of corporate and individual tax hikes to fund the $3.5 trillion plan, but Beltway insiders are dubious the more controversial plans — like taxing share buybacks and hefty executive payouts — will make the final bill.
The plans are in their early stages, still being hammered out by Democratic lawmakers, but they include:
Raising the top corporate tax rate “from 21 percent to a higher rate.” The document doesn’t list a specific rate, but President Joe Biden has previously called for corporate taxes to be raised to 28 percent.
Taxing stock buybacks, one of Massachusetts Democratic Sen. Elizabeth Warren’s pet projects. When a company buys back its stock, it often gooses the stock price as it takes shares out of circulation. The proposal could apply an “excise tax” to companies that buy back a significant amount of stock. Alternatively, buybacks could be treated as a certain type of dividend to shareholders, according to the document.
Imposing a “CEO pay disparity” excise tax on companies whose chief executives make more than a certain percentage of the average worker’s pay.
Reinstating the 39.6 percent top personal income tax rate to replace the 37 percent rate that is in effect now.
Taxing capital gains at the top individual tax rate for “high-income taxpayers,” which the document defines as people in the top tax bracket.
Establishing a minimum corporate tax rate of 15 percent of a corporation’s “book income” — even after including certain deductions.
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https://nypost.com/2021/09/03/senate-dems-assembling-wish-list-of-tax-hikes-to-fund-3-5t-spending-bonanza/
