Biden’s millionaire tax hike would hit less than 1% of Nebraskans | New
(Denver) – President Joe Biden’s proposal to eliminate the lower tax rate on capital gains and stock dividends for US millionaires would hit less than half of 1% of taxpayers, according to a new analysis by the Institute on Taxation and Economic Policy.
Amy Hanauer, executive director of the institute, said the tax, intended to help pay for child care costs and other aids for low-income workers, would have an even smaller impact on Nebraskans.
“I think what President Biden is betting on is that the richest 0.2% of Nebraskans can afford to pay a little more so that everyone in Nebraska can have a better future for their children. , better access to child care, pre-K, college, ”Hanauer said.
Currently, people who make money through passive investments pay a tax rate of just 20%, significantly less than the rates paid by people who earn their income through work. Biden’s reviews Plan of American families, which would also extend the child tax credits included in the American rescue plan, argued that this will increase deficits and shrink the US economy.
Some Nebraskan lawmakers have other plans for how governments should collect taxes, but have so far been unable to pass a voting measure on a constitutional amendment, which would replace property, income, sales, inheritance and inheritance taxes with a state-wide consumption tax.
Hanauer noted that when taxes are based on consumer spending, low-income workers end up bearing most of the burden.
“Higher income taxes can really restore tax code fairness,” Hanauer argued. “We don’t want to see a real reliance on sales and consumption taxes, which low-income people end up having to pay more because they spend almost everything they make because they earn an amount. modest.”
Biden is also proposing to raise corporate tax rates to pay for his U.S. plan for families. Last year 55 major American companies paid zero dollars in federal corporate income taxes on a total of $ 40 billion in profits, which pulled $ 8.5 billion out of federal tax funds.