Leading Democratic senators on Tuesday (local time) introduced tax bills that would help fund President Joe Biden’s social policy and climate plans. The plan, consisting of two parts, was presented by Senators Elizabeth Warren, Ron Wyden, and Angus King.
The first part of the plan is a 15 percent minimum tax for U.S. corporations that generate more than $1 billion in annual profits over three years. The three senators estimate that the corporate tax will apply to about 200 companies. The 15 percent is in line with agreements agreed by 136 countries on October 10 to prevent companies from paying little or no taxes.
The second part of the plan is a “billionaire tax” on people with wealth over $1 billion (862 million euros) and an annual income of $100 million (about 86 million euros) for three consecutive years. Senator Wyden promised to reveal details such as the amount of the tax “at a later stage.”
Senator Warren said the tax plan is part of a broader democratic campaign to curb tax evasion by corporations and the wealthy.
The White House has voiced support for the legislation, saying Biden will struggle to get it included in the “Build Back Better” bill, which should allocate more than $1 trillion ($862 billion) over the next decade to infrastructure-related programs. The three lawmakers also expected broad support from the 50-member Democratic faction in the Senate, including conservative Democratic Senators Joe Manchin and Kirsten Senema.
This does not mean that the plan can count on the support of Democrats in the House of Representatives. The more progressive part of this faction, in particular, favors linear increases in tax rates for most corporations and all the wealthy. Republicans in both the Senate and the House of Representatives are expected to vote against the proposals anyway.
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