More taxes for the rich and corporate profits, less for the middle class: details of US tax reform presented

More taxes for the rich and corporate profits, less for the middle class: details of US tax reform presented
More taxes for the rich and corporate profits, less for the middle class: details of US tax reform presented

The US tax reform which provides a increase in the levy on corporate profits and on higher incomes in favor of the middle class and the most disadvantaged sections of the population. The Democrats presented the House today the detailed plan of the tax turn. The tax rate on corporate profits would rise from 21 to 26,5%, after being reduced in 2018 by 14 points from Donald Trump (in Italy the levy on business profits is 24%, ed). The tax rate on the part should rise by 2.6% (from 37% to 39.6%) of personal income that go beyond 400 thousand dollars a year, a lower threshold than initially proposed by the White House. In the case of income over $ 5 million the increase in taxes is instead of 3%.

The levy on the earnings made also rises investing in the stock market, with the capital gains tax passing from 20 al 25%. Also considering the tax on capital income, the levy on the profits obtained on the markets reaches almost 32%. Among the proposals under consideration by Congress there is also a 2% tax on “buy back”, namely the buyback of own shares by a company. Practice widely used in recent years a Wall Street, a way to push up the value of shares and stock options and thus reward shareholders and managers.

A squeeze on companies whose profits run out is also expected directly in the income of owners and companies should also face new limits on the deduction of interest and higher taxes on income earned abroad. The crackdown on companies also comes in the light of what has happened in recent years when, thanks to one slalom between different legislations tax and deductions of individual states, over half of the large US companies they managed not to pay even a dollar in taxes. The best known case, but not the only one, is that of Amazon that in the face of profits of almost 8 billion dollars made in the US alone in 2019, in 2020 it paid no taxes. An aspect repeatedly emphasized by the President Biden. As well as the inquiries that showed how US billionaires the likes of Jeff Bezos, Elon Musk o Warren Buffett manage to pay an average rate of just over 3%.

If approved in the terms outlined today the tax reform it could be enough to finance interventions in support of the economy and the middle class that are worth a total of 3.5 trillion dollars over the next 10 years. Key measures include more resources for childcare, the creation of kindergartens for all and the provision of two years of community colleges, institutes of higher education, free to all Americans and guarantee paid family and medical expectations. The plan also includes large amounts tax relief for medium-low incomes

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