‘Tax the rich’, the tone is set for Biden’s tax reform

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14 sept. 2021

“Tax the rich”. The slogan displayed on a dress by Alexandria Ocasio-Cortez, a left-wing figure of the American Democratic Party, set the tone for the goal of Joe Biden’s tax reform bill, under consideration in Congress.

Alexandria Ocasio-Cortez in a “Tax the rich” dress – AFP

New York’s elected member of the House of Representatives caused a sensation on Monday night at the Metropolitan Museum of Art (Met) gala by appearing in a white evening gown on which was stamped in scarlet red letters: “TAX The RICH” .

A few hours earlier, the House Democrats had presented their project which includes tax increases for the wealthiest Americans and large companies, thus reversing the cuts made in 2017 under Donald Trump.

“I don’t want to punish anyone’s success, but the rich have been enjoying tax breaks for too long, unlike the middle class, Joe Biden tweeted Tuesday.
“I intend to push through one of the biggest tax cuts ever for the middle class, which will be funded by making those at the top of the economic ladder pay their fair share,” he said. continued the US president.

Alexandria Ocasio-Cortez was quick to clarify on her Twitter and Instagram accounts that she had not paid a penny of the $ 35,000 in admission fees to attend the ultra-social and unmissable event of all of New York .

“Before the enemies run wild, elected New Yorkers are regularly invited to and attend the Met because of (their) responsibilities in overseeing and supporting the city’s cultural institutions,” she explained.

She also did not pay for the dress of the black designer Aurora James, who works in favor of “economic fairness” according to her Instagram account.

Fund social reforms

With her dress, Alexandria Ocasio-Cortez immediately put pressure on the Democrats who began negotiations and must now find a consensus on the text that will be put to the vote.

According to the bill published by the Democrat-controlled House Tax Committee (“Ways & Means”), the tax on top-income American households would drop from 37% to 39.6%, with the upper bracket on individuals earning $ 400,000 per year and $ 450,000 for married couples.
The tax on businesses with more than $ 5 million in annual revenue would drop from 21% to 26.5%.

This rate is lower than that predicted by President Joe Biden in his tax reform bill (28%) but higher than that proposed by key Democratic Senator Joe Manchin (25%).
The corporate tax rate was lowered from 35% to 21% during the major tax reform of Republican President Donald Trump.

Joe Biden’s reform is supposed to largely fund his titanic plan of social reform, amounting to $ 3.5 trillion over ten years.
But according to estimates by the Joint Committee on Taxation, a non-partisan congressional committee, this project would release only some $ 2.1 trillion at the same time.
Republicans should fiercely oppose these proposals.
But the Democrats will be able to use a parliamentary channel to pass their reform with their votes alone.

Given their very slim majorities in both chambers, the Democrats must nevertheless absolutely reach a difficult consensus in their camp between the left wing and the more centrist.

Called “Build Back Better”, the Biden plan of social reforms provides for $ 3.5 trillion in investments over ten years to “transform” American society: free kindergartens, better access to health, investments in public housing, regularization of immigrants and the fight against climate change.
“The time is now for nurseries, health care, climate action. Tax the rich,” Ms. Ocasio-Cortez tweeted.

The Democratic leaders of Congress have given the various parliamentary committees until Wednesday to present their detailed parts of this huge project. Negotiations within their camp will then continue.

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