For far too long, the tepid Democratic leadership on Capitol Hill has lacked any real comprehensive plan to overhaul the federal tax code to increase taxes on the wealthy and provide real tax relief to middle-class Americans.
As if someone turned a light on, U.S. House Minority Leader Nancy Pelosi of California and U.S. Representative Chris Van Hollen of Maryland unveiled a progressive tax reform plan yesterday. This plan would repeal tax breaks that benefit the wealthy and institute a new fee on stock trades in order to provide tax relief for middle-class Americans:
Senior Democrats, dissatisfied with the party’s tepid prescriptions for combating income inequality, are drafting an “action plan” that calls for a massive transfer of wealth from the super-rich and Wall Street traders to the heart of the middle class.
The centerpiece of the proposal, set to be unveiled Monday by Rep. Chris Van Hollen (D-Md.), is a “paycheck bonus credit” that would shave $2,000 a year off the tax bills of couples earning less than $200,000. Other provisions would nearly triple the tax credit for child care and reward people who save at least $500 a year.
The windfall — about $1.2 trillion over a decade — would come directly from the pockets of Wall Street “high rollers” through a new fee on financial transactions, and from the top 1 percent of earners, who would lose billions of dollars in lucrative tax breaks.
Unfortunately, since Republicans control both houses of Congress, this is going absolutely nowhere for at least the next two years. However, for Democrats to simply advocate such a bold plan is a big step forward towards combating the rampant problem of income inequality in this country and restoring the American middle class.