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Friday, April 19, 2024

Democrats’ Tax Reform Plan

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Our economy is doing well.

André Carson

The latest jobs report shows we added 275,000 jobs in February — another sign of economic strength. In the last 4 years, we’ve created 14 million new jobs. Unemployment is at some of the lowest rates in 50 years. Indiana is experiencing its share of that growth, with $23 billion so far in commitments to reinvest in manufacturing.  

Progress takes time, but we are on the right track towards an economy that works for everyone.  

We’ve seen success because we’re reinvesting in what makes our country what it is – the middle class. And we’re making our system more equitable for everyone by making the ultra-wealthy pay their fair share.

It’s almost tax day, and there’s no better time to advocate for a fairer tax code. If you have to pay your taxes, so should the ultra-wealthy. In President Biden’s State of the Union on March 7th, he pointed out the average federal tax rate for billionaires is 8.2 percent – far less than what most Americans pay.

Making the ultra-wealthy pay their fair share is exactly that – fair. For years, the top 1% of Americans have gamed the system to their advantage, using their wealth and influence to skirt the rules the rest of us follow. But thanks to Democrats’ efforts, we’re finally holding them accountable – and using that money to pay for policies that help everyday, hardworking American families.

The Inflation Reduction Act works by raising taxes for the ultra-wealthy but also by holding them accountable to pay taxes they already owe. In fact, we’ve already collected almost $500 million from just 1,600 millionaires who had not paid their tax debts – just by increasing our enforcement efforts. It’s estimated that we’ll recover $150 BILLION over the next decade from ultra-wealthy people and big corporations. No American making less than $400,000 a year – well above the average U.S. annual salary of $59,000 – will experience a tax increase. 

We’ll also raise $300 billion over the next decade by requiring large corporations to pay a 15 percent minimum tax on their profits. There is no reason why corporations should pay less than their employees. In the State of the Union, President Biden also proposed a minimum 25% tax for billionaires, the richest of the rich in our country. That would raise an additional $500 billion over the next 10 years.

This strategy is about fairness and equality. And it’s about reinvesting in the American workers who built our country. No corporation and no wealthy individual achieved their success without the hardworking labor of the middle class.

That’s why any success our country experiences needs to go back to the middle class.

By making the ultra-wealthy pay their fair share, we can address the type of kitchen table issues impacting most Americans: the high cost of childcare. Debilitating debt. Grocery costs. Access to high-quality education, no matter where you live. These issues disproportionately impact Black Americans and must be addressed.

It’s also why I’ll keep voting to expand the Child Tax Credit through the American Rescue Plan. If you’re a parent and signed up to receive a stimulus check during the pandemic, or if you filed tax returns in 2019 or 2020, you probably received the expanded Child Tax Credit – which amounted to $3,000 per child 6-17 years old and $3,600 per child under 6 years old. The American Rescue Plan cut Black child poverty by 33 percent and provided a critical lifeline to millions of Black families. That was a result of Democrats’ work, and we want to keep giving you those savings. 

In January, I voted to expand the Child Tax Credit again. This package needs to pass the Senate to come into effect, but if passed, it could bring money back to your pockets this tax season. The IRS will automatically make adjustments for those who’ve already filed, so you won’t need to take any additional action if you qualify.

Democrats’ tax reform plan is essential to the future of our city, state, and country. It’s past time we make our system more equitable.

The middle class built this country. I’ll never stop fighting to rebuild the middle class.   

If you need assistance in filing your taxes for free, please take advantage of the IRS’ Free File program or many of the Low Income Taxpayer Clinics that assist individuals who have tax disputes with the IRS. You can learn more at www.irs.gov.

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