Lawmakers: No ‘trigger’ to raise taxes

With Democrats in control of both chambers, the Senate is poised to vote Wednesday on an amendment that would impose a 2 percent tax on all new personal income, corporate income and real estate investment income.

The proposal has a broad bipartisan support.

House Minority Leader Nancy Pelosi (D-Calif.) and Senate Minority Leader Chuck Schumer (D, N.Y.) are both supporters of the tax.

The White House and the Republican-led Senate are both opposed.

Senate Majority Leader Mitch McConnell (R-Ky.) has said the tax would raise about $1 trillion over 10 years, but it could not be known exactly how much.

The nonpartisan Congressional Budget Office estimates the tax will raise $1.1 trillion to $1,300 billion over 10, 10 and 20 years, respectively.

A tax on income over $400,000 would raise $7.5 trillion over that period, according to the nonpartisan Joint Committee on Taxation.

In addition to the tax, the measure would prohibit the federal government from providing any assistance to the states or local governments that impose higher property taxes than the state’s rate.

Republicans, including Sens.

John McCain (R) of Arizona and Ted Cruz (R), the Texas Republican who has championed the tax in the past, have said they support the proposal.

House Republicans will vote Wednesday to approve the amendment.

Sen. Chris Murphy (D) of Connecticut, who is also a member of the Budget Committee, said in a statement the tax is needed to prevent “a tax increase on the middle class.”

The amendment would raise a $500 billion tax on the richest Americans, including those making $1 million or more, and would cut the corporate tax rate from 35 percent to 21 percent, according the Senate Budget Committee.

The top individual rate would drop from 39.6 percent to 25 percent, the top individual income tax rate would be cut from 35 to 25 and the top corporate rate would rise from 35.5 percent to 35 percent.

House Democrats are also pushing for a similar tax on property and investment income, with a $200 billion tax to fund the infrastructure programs that President Trump wants to expand.

The Senate Budget committee will vote on the amendment Thursday.