Why Democrats Opposing Biden’s Tax Plan Are Wrong
As Congress continues to debate President BidenJoe BidenTexas announces an election audit in four counties after Trump asked Pennsylvania AG to prosecute GOP subpoenas in an election inquiry.$ 3.5 trillion budget bill, infighting among Democrats is blocking the passage of key agenda provisions that would ensure wealthy individuals and businesses pay their fair share of taxes. Instead of seizing this opportunity to right the wrongs of the US tax code that favors the rich, Democrats like the President of Ways and Means Richard nealRichard Edmund NealOvernight Energy & Environment – Brought to you by League of Conservation Voters – EPA finalizes rule to cut off HFCs Panic begins to seep into Democratic talks on Biden agenda Democrats surprised, caught off guard by the “framework” agreement PLUS (Mass.), Sens. Joe manchinJoe ManchinManchin fires warning shot at Medicare expansion plan Panic begins to seep into Democratic talks on Biden agenda Improved infrastructure plan is best way forward (W.Va.), and Senator Kyrsten SinemaKyrsten SinemaPanic begins to infiltrate Democratic talks on Biden agenda Improved infrastructure plan is best way forward Democrats surprised, caught off guard by ‘framework’ deal MORE (Arizona) are blocking significant tax reform.
With the overwhelming majority of Americans agreeing that higher taxes on the rich are necessary, there is nothing noble about what these politicians are doing. It’s time for wealthy Americans like me to put our money where our mouth is and send a clear message to Democrats opposed to tax increases: we know who you are; we know where your quarters are; you are either part of the solution or part of the problem.
The arguments currently being made by Democrats against Biden’s tax hikes echo the same outdated economic and political sentiments the Trump administration used to justify tax cuts for the wealthy in 2017. Despite a host of promises from Republican shillings for Trump’s tax cuts, the US economy only increased by 2.9% in 2018. A study by Institute for Economic Policy found that companies that pay minimum corporate taxes were in fact more likely downsizing and found no link between lower tax rates and broader economic growth.
As the United States struggles to recover from the economic devastation of the ongoing COVID-19 pandemic, Democrats who oppose Biden’s tax plan are blocking a once-in-a-lifetime opportunity to fund our country’s recovery without forcing American workers to bear additional financial burdens. The the moratorium on evictions has ended, leaving more than 750,000 Americans financially insecure with homelessness. With the federal unemployment benefits also end, millions of families are on the brink of poverty. Raise taxes for the richest people in our society – people who accumulated more wealth during the pandemic – is the best way for Democrats to ensure that our country has sufficient funds to provide the resources and services necessary to support the most vulnerable and get our economy back on track.
The tax plan put in place by Representative Neal and the House Ways and Means Committee last week does not do enough to address our rigged tax code and loopholes that allow wealthy individuals and businesses not to pay their fair share. Most blatantly, the proposal will leave the vast, virtually untaxed fortunes of billionaires like Jeff BezosJeffrey (Jeff) Preston BezosEquilibrium / Sustainability – Presented by the American Petroleum Institute – Climate change turns US into coffee country Foundations promise record funding for biodiversity intact. Instead of bowing to the will of Republicans and Democrats like Neal, Democrats on the Senate Finance Committee, led by Sen. Ron WydenRonald (Ron) Lee WydenOvernight Energy & Environment – Brought to you by League of Conservation Voters – EPA finalizes HFC cut rule Panic begins to seep into Democratic talks on Biden agenda Democrats surprised, caught off guard by the “framework” agreement PLUS (Ore.), Need to make key changes to the bill.
First, those of us with investment income over $ 1 million should pay the same tax rates as those who work for a living. There is no intellectual or economic justification for American workers to pay a higher tax rate than investors. Second, Congress must eliminate the “grossed-up base” that allows heirs to billionaires to avoid capital gains tax on inherited assets. Last but not least, we must close the deferred interest loophole that allows fund managers to mistakenly label their “ordinary” income as capital gains income for tax purposes. The Ways and Means Committee’s proposal extends the investment retention period to five years, but since most private equity firms hold investments for six years, this change will have virtually no effect. The loophole must be completely closed to avoid any possibility of exploitation.
Rich people no longer need lawmakers to defend our financial interests – trust us, we’re doing fine. That is why we are urging like-minded wealthy people across the country to speak up. My organization, the Patriotic Millionaires, is lead an intense campaign in opposition to the Democrats’ attempt to block President Biden’s agenda and limit the scope of the reconciliation bill’s tax hikes on wealthy individuals and businesses. We have made it clear to Democratic leaders in Congress that we will not support Democrats who do not support the tax reforms outlined above. We also encouraged the Progressive Congressional Caucus to withhold their votes on the bipartisan infrastructure bill unless Democrats unite behind Biden’s tax plan.
Rich people like us don’t need another handout, but millions of families across our country need a fully funded, fully functioning government. It is time for Democrats to pick sides. Those who prioritize the wealth of the rich over the needs of most Americans do not deserve the position they occupy.
Morris Pearl is President of the Patriotic Millionaires and a former Managing Director of BlackRock.