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Why Do Democrats Want to Tax the Rich?

A group of Democrat supportersMore than 90 percent of American taxpayers earn less than $400,000—but what about the remaining 10 percent?

Well, they’re making billions. And all that the democrats want from them is that they pay their fair share just like everybody else does, through taxes.

The democrats are not happy with the state of the economy, and let’s be honest—nobody is. Unemployment and inequality are getting out of hand, the pandemic recovery is yet to start, and our national debt has exceeded $28 trillion. Well, somebody needs to pay up!

Why Taxing the Rich Makes Sense Now More Than Ever?

The nation is currently recovering from the COVID era’s financial repercussions. But the recovery is somewhat K-shaped.  This essentially means that only some segments of society are able to recover.

Think of this in terms of jobs. Those at the very bottom lost their jobs, but most at the top not only had their jobs the entire time but were also able to accumulate more wealth despite the pandemic.

This means that we’re currently in a K-shaped economy where equal taxes on everyone would just make the poor poorer, while the richer would feel no difference at all. This, in turn, would hinder overall growth for the US economy.

So, to sum it up, the rich are rich enough to absorb the effects of higher taxes, and therefore, it makes perfect sense to tax them accordingly, especially right now.

How Are the Democrats Planning to Tax the Rich?

The tax burden would be equitable instead of being equal. According to President Biden, he’s a capitalist and doesn’t have a problem with anybody making millions. But what the state needs from millionaires and billionaires are for them to pay taxes the same way as middle-class people do. A proportionate amount from their income, especially the amount that they’re just sitting on while the country is drowning in debt.

To do this, Democrats have proposed to raise the top marginal income tax rate from 37% to 39.6%, but for those with more than $400,000 of taxable income. The top capital gains will increase too, by 5 percent. Moreover, there would be a 3 percent surcharge on those earning more than $5 million.

There are also some other financial policies in the works that are aimed to reduce inequality through more fair taxation policies.

If you’d like to learn more about the present administration’s policies or just want the latest political news from nonpartisan news sources, check out Divided We Fall. They’re one of the most unbiased news sources out there.

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