Democrats on the House Ways and Means Committee — which plays a key role in determining tax policy and other fiscal measures — are drafting a proposal to raise $2.9 trillion in new taxes.
The proposed tax hikes — which would occur over the course of ten years — were introduced by Ways and Means Committee Chairman Richard Neal (D-MA) as Congressional Democrats attempt to pass a separate $3.5 trillion social welfare agenda without any support from Republican colleagues. The outline of the omnibus legislation — which incorporates key elements of the American Jobs Plan and American Families Plan — includes universal pre-K, ‘tuition-free’ community college, a paid family and medical leave handout, additional health benefits for Medicare, and a “Civilian Climate Corps.”
The Democrats’ bill would follow President Biden’s $1.9 trillion American Rescue Plan, which intended to stimulate economic activity following COVID-19 and the lockdown-induced recession.
Indeed, the Democrats’ tax hikes mark another milestone in codifying President Biden’s domestic spending agenda.