Democrats in the House of Representatives on Monday presented their tax reform bill that would reverse the cuts made by Donald Trump by raising taxes on the wealthiest Americans and large corporations, but still needs to be negotiated in Congress.
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This project is supposed to make it possible to raise nearly 3 trillion dollars in new tax revenues, to partly finance the titanic plan of social reforms wanted by Joe Biden, in the amount of 3.500 billion dollars.
The "
Build Back Better
" plan
According to the bill released by the
Democrat-controlled
House Tax Committee (
Ways & Means
), taxes on top-income Americans would drop from 37% to 39.6%. 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%). Negotiations will therefore continue within the Democratic camp over the coming weeks to reach a consensus.
The corporate tax rate was lowered from 35% to 21% during Republican President Donald Trump's major tax reform in 2017. Republicans are fiercely opposed to the Democrats' proposals, but the latter will use a parliamentary route that will allow them to adopt their reform with their own votes.
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.
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“
The cost of living is skyrocketing for American families. And what are House Democrats doing? They're trying to pass the biggest tax hike in decades,
”House Republicans tweeted, citing a Politico article. Called "
Build Back Better
" ( "
Building back better
"), the Biden plan provides social reforms 3.500 billion investment over ten years to "
transform
" American society: free nursery, better access to health, investments in public housing, regularization of immigrants, and the fight against climate change.
Democratic leaders of Congress have given 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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