September 22, 2021

Democrats Look to Wealthiest Americans, Corporations to Pay for Reconciliation Bill

House Democrats are crafting a deal to implement President Biden’s Build Back Better plan while keeping his promise that the revenue to pay for it will come only from Americans who earn more than $400,000 a year. The funding would address initiatives like long term care for seniors, health care, community college and child care as well as climate change.

Several House members are proposing that the top tax rate return to 39.6% on individuals earning more than $400,000 — or $450,000 for couples — in addition to a 3% surtax on wealthier Americans with adjusted income beyond $5 million a year. For businesses, the proposal would increase the corporate tax rate from 21% to 26.5% on companies’ annual income over $5 million. The 2017 Trump tax law cut the corporate tax rate from 35 to 21 percent.

“It is time that the wealthiest American billionaires pay their fair share so that we can afford things like home health care for seniors who are desperately trying to age in place,” said Joseph Peters, Jr., Secretary-Treasurer of the Alliance. “President Biden has called for critical investments that will help older Americans, including $400 billion for Home and Community Based Services to not only get seniors the care they need, but also to pay their caregivers a reasonable living wage and decrease worker turnover.”