Democrats say they want to tax the wealthy, but their plan could fall short.
“Tax the Rich,” a concept that is making its way through Congress and even decorating the dress of one of its most prominent members, has become a rallying cry for Democrats as they strive to restructure the US social safety net.
It was given a major airing on Monday when Alexandria Ocasio-Cortez, a Democratic House representative who frequently decries the country’s economic inequities, wore a gown to New York’s splashy Met Gala with the statement printed in scarlet capital letters.
“The time has come for everyone to participate in childcare, healthcare, and climate action. “Tax the Rich,” Ocasio-Cortez said on Instagram, accompanied by a photo of a white off-the-shoulder dress she claimed to have stolen.
The congressman is anticipated to endorse President Joe Biden’s plan to spend $3.5 trillion over ten years to enhance a variety of social programs by raising taxes on the wealthiest and companies.
However, experts warn that while some wealthy people’s taxes may rise, the bill’s failure to charge taxes on the growth in value of assets like as real estate and stocks will have a smaller impact than predicted.
“It depends on your definition of rich. Corey Husak, senior government relations manager at the Washington Center for Equitable Growth, told AFP that the plan “certainly raises taxes on very wealthy earners in a variety of ways.”
“The bill will hurt multimillionaires and the just wealthy far more than it will effect the crazily wealthy.”
According to Samuel Hammond, director of poverty and welfare policy at the Niskanen Center, some of the proposed tax reforms offer “a real though modest rise in the progressivity of the US tax code rate.”
However, by wearing her motto-bearing dress to an event where tickets cost $35 and tables cost up to $300,000, Ocasio-Cortez, a New York-area congresswoman, “did the affluent a wonderful service,” similar to when an Oscar winner uses their award speech to condemn Hollywood.
“It allows a wealthy audience to feel progressive without having to pay any actual money,” Hammond explained.
Biden’s plan, dubbed “Build Back Better,” aims to “transform” American society by instituting universal pre-kindergarten, lowering child care costs, improving health-care access, increasing public-housing investments, legalizing millions of migrant workers, and expanding climate-change-fighting measures.
Republicans have stated that they will not support it, while Democrats want to approve it with only their votes – a daunting job given that they control both chambers. Brief News from Washington Newsday.